Retail Realities: Unmasking the Importance of Inventory Balance for Sustainable Growth
How do you improve in an environment where there are 100s of factors affecting business?
Understand the main point of leverage and just focus on it.
With laser-like focus.
The illusion of Progress in Retail:
Why Availability Matters More Than Anything Else
Retail can be a fast-paced and ever-changing industry.
There are always new trends, technology advancements, and competition to keep up with. As a result, retail companies are often trying to improve and grow.
Companies may focus on
– better locations,
– training their staff,
– improving visual merchandising,
– changing buying and sales policies,
– adjusting pricing,
– cutting costs, and
– creating new products.
But, despite all these efforts, the illusion of progress can often still persist.
The reason for this illusion is that there are more than 100 factors that a retail company can work on to improve.
But if the company fails to focus on the most important factor, it will never reach its full potential.
The number 1๏ธโฃ priority in retail should always be the ๐ฎ๐๐ฎ๐ถ๐น๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ ๐ผ๐ณ ๐ฏ๐ฒ๐๐ ๐๐ฒ๐น๐น๐ฒ๐ฟ๐. ๐๐ป๐ฑ ๐ฟ๐ฒ๐ฑ๐๐ฐ๐ถ๐ป๐ด ๐๐ต๐ฒ ๐ฎ๐บ๐ผ๐๐ป๐ ๐ผ๐ณ ๐๐น๐ผ๐-๐บ๐ผ๐๐ถ๐ป๐ด ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐.
Think about it this way:
If a customer can’t find the item they’re looking for, they’re likely to leave without making a sale.
Even if they do manage to find what they’re looking for. If there’s too much stock. The store feels cluttered. It can create a negative shopping experience. Reduce the customer’s willingness to spend.
If a store has a good balance of inventory. Best sellers are always in stock. It creates a positive shopping experience and encourages customers to make more purchases. This results in
– higher conversion rates,
– bigger ticket sizes, and
– more repeat business.
As a CEO or Head of Planning,
All other efforts to improve and grow the retail business should be secondary to
๐ฒ๐ป๐๐๐ฟ๐ถ๐ป๐ด ๐๐ต๐ฒ ๐ฎ๐๐ฎ๐ถ๐น๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ ๐ผ๐ณ ๐ฏ๐ฒ๐๐ ๐๐ฒ๐น๐น๐ฒ๐ฟ๐ ๐ฎ๐ป๐ฑ ๐ฟ๐ฒ๐ฑ๐๐ฐ๐ถ๐ป๐ด ๐๐น๐ผ๐-๐บ๐ผ๐๐ถ๐ป๐ด ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐.
By prioritizing this,
Retail companies can avoid the illusion of progress and reach their true potential.