So you’ve hit year end. Your accountant has finished your taxes and your income statement looks great. So why does it feel like such a challenge to deal with the month-to-month expenses of running your retail store?
The Retail Consultants at CRS see this all the time. We meet business owners with viable businesses and a healthy income statement who feel like they’re having a hard time keeping their head above the financial water. Our experience has taught us that most often that the solution is in the proper flow of inventory. You must have the right merchandise at the right time. If you can solve that puzzle, you will have good cash flow and a healthy profit. To help our clients with this, we use the Management One® Winning@Retail™ program.
And there in lies the reason for merchandise planning. Building a sales plan and extrapolating from that an open-to-buy plan gives the retailer and the buyers an accurate idea of what needs to be brought through the store every month. Creating an accurate class structure is the key to this.
Many retailers have POS Systems, but don’t use them to their full potential. Yes, a POS System makes your daily transactions easier and more accurate, but it should also be collecting data about what you’re selling and when you’re selling it. Add to this an accurate class structure and you’ll be able to examine and improve all of the profit centres in your store.
When you work with a Canadian Retail Solutions Retail Consultant, you’ll be able to understand what drives people into your store and when so you can ensure that you have the right product at the right time.