Omaha, NE—Now that the holidays are wrapping up, it’s time to assess your inventory. If you have a surplus of aged inventory (and most retailers do), recognize that you did not acquire this problem in one day or even one holiday season. And it won’t get solved in one day. But, to free up dollars for new purchasing and replenishment, you need get rid of old inventory! Aged inventory restricts your cash flow.
Aged inventory is also a report card on your buying. Depending on how much of your stock is aged, you might consider changing how you buy new product.
Some approaches (marking the product up or re-merchandising) simply prolong the problem. It’s better to take action rather than wait and hope some more. Here are our recommended tips for solving the issue once and for all.
First, take the following immediate steps:
Then take the following long-term steps:
We will all make buying mistakes, so budget for markdowns and scrapping in your merchandise plan. You don’t want any unanticipated hits to your gross profit, which could result in not making your goal. The key to aged inventory reduction is to take action quickly and frequently. A healthy and profitable inventory is one that turns!
The Edge Retail Academy provides customized strategies for retailers and vendors to increase profits, optimize growth, reduce debt, create profitable inventory solutions, build effective teams and enhance brand loyalty and profitability. The Academy is committed to helping jewelry businesses improve their bottom line while reducing uncertainty and stress. Edge Retail Academy software and unique pool of business advisors provide real world knowledge and advice for guaranteed results, all on a “no-contract” basis. 877-569-8657, ext. 1, Becka@EdgeRetailAcademy.com or www.edgeretailacademy.com for more information on this or any business topic.