As a continuing part of this months blog, you should be looking at your business and asking yourself lots of questions. Firstly what is the stock turn on your stock lines and most importantly are they turning fast enough? Stock should turn at least 3 times in a year to be financially viable, with your best sellers turning at least twice this. The message here is little and often.
Identify and review those best sellers by style and also by size, are they still effective? Look at the sell through percentage on seasonal one shot ranges and colours, have they achieved the minimum required sell through percentage? Lingerie needs to achieve 60% to be financially viable and nightwear in excess of 65%. Finally review the profitability per category, by brand or supplier, has it increased? decreased ?If it is too low how can it be improved? Can you renegotiate terms with your supplier? Are these lines selling out fast enough do they warrant the money you invest in them and return your business enough profit?
Once you have finished this process and completed your analysis you can start to build your buying plan for next season. Plan, plan & then plan some more as successful buying and retailing is all in the detail. This process helps you to feeling comfortable and relaxed about your business, where you are going and enable you to look forward to seeing the new seasons collections.
