Data is taking the retail world by storm. In order to be profitable and stay competitive, retailers are tapping into this incredibly valuable asset. They’re pulling, analyzing, and using their data to make smarter business decisions about the inventory their buying, how much their buying, and even how and when they’re selling it. So how can you start using your data to make positive changes in your business?
Check out why you need to proactively identify slow moving inventory and how to do it.
WHY: When you don’t proactively track your inventory to identify which pieces have been around for too long, you run the risk of having an item that will only sell after a massive markdown. Markdowns are a healthy part of running a business, they’re a necessary part of moving old inventory out to make room for items you know will sell at full price. When you don’t know that certain items aren’t selling well (because you’re not using your data), you end up holding onto depreciating inventory that can’t make you money.
HOW: Use your inventory management system to dig into which items are your worst performers. After you can identify what products might be taking up room on your shelves, you can stop yourself from ordering more of the poor performers and start setting up a markdown calendar for those items. When you understand how your inventory is performing, you have the opportunity to make better buying decisions in the future.
RICS Pro Tip! Use the “Best Sellers Report” to identify items that are your worst sellers. Go to the Dashboard, select Reporting, select Sales, and choose “Best Sellers Express.” Set the options to show the number of poor performers you want to clear out (5, 10, etc.) and choose display by SKU. Try running the reports a few times to show the items that were worst by ROI, Profit, and Quantity Sold.