Retail Musings
"How can money be the root of all evil, when shopping is the cure for all sadness..." Elizabeth Taylor
Profit and healthy cashflow come from having the stock that customers want, where they want it (ie platform or location) and when they want it. The consequences of allowing stock to get out of balaqnce with demand can be likened to a seesaw. You will go broke if you have either of these problems: too much stock or not enough stock.
Inadequate or Lack of Wanted Stock does the following:
- Creates out of stocks
- Frustrates customers
- Loses store credibility
- Loses sales and affects your cashflow
- Is the pathway to bankruptcy
Unwanted or Excessive Stock:
...
From a store's perspective, stock management means controlling the stock that is being bought so that customer needs are continually satisfied and maximum profitability is achieved.
Remember: Merchandise is typically the largest single asset in a retail business and, as such, its productivity is critical when determining a retailer's profitability.
Effective Stock Management is important because:
1) Stock is Money
Stock is money invested and the profitability and financial viability of the retailer depends on the return obtained from that investment.
No stock or the wrong stock means no sales and no income. Since stock is the prime generator of revenue, having the right stock in the right quantities at the right time for the customer is fundamental.
From a store's perspective, stock management means controlling the stock that is being bought so that customer needs are continually satisfied and maximum profitability is achieved.
Remember: Merchandise is typically the largest single asset in a retail business and, as such, its productivity is a critical determinant of any retailer's profitability.
Effective Stock Management is vitally important because:
Stock is Money
Stock is money invested and the profitability and financial viability of the retailer depends on the return obtained from that investment.
No stock or the wrong stock means no sales and no income. Since stock is the prime generator of revenue, having the right stock in the right quantities at the right time for the customer is fundamental.