Stock, Sell-through Optimiser and Markdown Management
Initial stock allocation, in-season management and then markdown management to clear stock, are three critical stages to a product’s life cycle. Every retailer tries to achieve between 65% and 80% of full-price sell through rates. However you cannot predict the performance of a product.
Get it wrong and you can
- Lose sales
- Give away too much margin to clear
- End up with too much cash tied up in stock
Buyers are traders, they are making educated guesses, which are not always right.
Profimetrics helps you optimise. It allows you to play the ‘hand’ you have to its maximum. It acts like your “best” merchandiser across all categories for every product in every store. Essentially in this areas it is helping you maximise the gross margin return on stock.
In many retail segments, there is a need for markdowns at the end of season or the end of a product’s life to cleardown stock.
In terms of Markdowns, most retailers react too late, with markdowns which are often too big, often applied indiscriminately across all stores. This results in unnecessary reductions in margin. Profimetrics helps you avoid that.
So how does Profimetrics help with Stock, sell-through and Markdown Management?
Initial Allocation
Profimetrics allows you to look at similar products and work out an optimum allocation of product across stores
Promotional Stock
As part of promotional planning and simulation Profimetrics will highlight where you need to order additional stock as part of a promotion
Stock Balancing
It will help with Stock rebalancing. Alerting to over and under stocks, and suggesting stock transfers to avoid lost sales
Stepped Price Clearance
It allows you to set up a stepped price structure designed for clearance based on age of stock, which ensures a managed step down in price rather than a mad reduction at the end. Preserving margin
Differential Markdowns
Profimetrics allows retailers to operate differential Markdowns. Not all products perform the same way in every store. Profimetrics helps you to ensure Markdowns are designed appropriately for each product in each store. It does so in the background without any effort from the merchandisers.
Benefits
You cannot over emphasise the importance of stock management in retail. Getting it right or wrong can be the difference between solvency and insolvency. It can be the difference in making or not making the sales targets and it can be the difference in achieving the margin target.
Profimetrics not only helps you keep that in check, but helps optimise the gross margin return on stock.
