Driving productivity

Cost of sales can typically represent 50% – 80% of a retail business’ cost. It is absolutely imperative that merchandise management strategies are effectively employed to manage this cost. Some strategies require you to (increase sales or) reduce your stock. Such a reduction can be achieved in the following ways:

• Sales (up)
• Stock (flat)
  

OR

• Sales (flat)
• Stock (down)

OR

• Sales (up, up)
• Stock (up)

OR

• Sales (down)
• Stock (down, down)

This represents more options than most people think of 🙂