Driving productivity

Cost of sales can typically represent 50% - 80% of a retail business’ cost. It is absolutely imperative that merchandise management strategies are effectively employed to manage this cost. Some strategies require you to (increase sales or) reduce your stock. Such a reduction can be achieved in the following ways:

  • Sales (up)

  • Stock (flat)


  • Sales (flat)

  • Stock (down)


  • Sales (up, up)

  • Stock (up)


  • Sales (down)

  • Stock (down, down)

This represents more options than most people think of :-)