Make More Money with Smarter Inventory Turnover — Webinar Jan. 10
Though retailers are currently in the throes of a better-than-predicted holiday sales season, attention will soon turn to January’s markdowns and how to buy smarter for 2012. Heading into the next buying cycle anchored by Outdoor Retailer, many are casting about for faster and more efficient ways to move inventory so that ROI can continue to be solid.
“Improving turnover is the pathway to profitability,” according to Ritchie Sayner at RMSA, a national retail consulting company specializing in sales and inventory forecasting. “Faster turning stores have better cash flow, larger sales increases, and way better GMROI.”
How do you increase turns? Is it in the pricing strategy, but at the risk of sacrificing margin? Are there other options that don’t skew pricing models? Experts recommend examining several factors, including:
- Negotiating stock balancing agreements in advance for poor performing styles
- Looking at flexible payment and delivery options to keep fresh product coming in while allowing some sales to take place before payments come due
- Keeping Open-to-Buy available for off-price opportunities that can be volume drivers
- Minimizing seasonal carryover and avoid packing goods away for the next sale
- and many more.
To demystify inventory turnover secrets, OIA Outdoor University® will host an online session before Outdoor Retailer takes place and orders are set in stone for the coming year. Those looking to improve inventory turn will learn the cardinal rules for turn profitability, including:
- The one week one percent rule of stock turnover
- How to determine if quantity discounts are the right way to go
- Which 3 key steps lead to improved inventory turn immediately
The session is scheduled for Tuesday, January 10 at 2:00 pm (Mountain), and is available to OIA members at no cost ($99.00 for non-members).
Paul Erickson, Senior Vice-President of Client Services at RMSA, will lead this fast-paced workshop, which is the first in a four-part Outdoor University series exploring each of the key elements of retail profitability. Retailers and business managers wanting to increase their inventory turnover should be ready with questions, as the jam-packed presentation will move quickly and the Q&A will be extensive. You won’t want to head into Outdoor Retailer without this information!
For a full schedule of upcoming Outdoor University sessions at Outdoor Retailer and online – including the second session on January 31 dealing with shoulder season markdown strategies –visit outdoorindustry.org/ou.