Tips and Insight on becoming a profitable retail store

How’s your Turnover? Let’s do the math!

Everyone talks about turnover, but do you really understand what it is and how important it is? Well, a simple definition is that “turnover is the rate at which you deplete your inventory during the year”. What that means in static terms is that if you had a full store of merchandise on January 1st … Read more

Break the Cycle with Open To Buy!

Old habits are hard to break, but old habits can break YOU. Retailers go out of business because of what is illustrated above. It’s not a matter of buying the WRONG ITEMS as retailers have a great feel for what’s available and what their customers want. The problem is always one of buying the WRONG … Read more

Don’t fool around with your Bottom Line!

You are nobody’s fool until it comes to buying for your store. Then there’s a big chance that your ego gets in the way of your sensibilities and you buy too much merchandise. When you do that, you will be receiving too many invoices. To pay those invoices along with the overhead, you will take … Read more

Let Open To Buy guide all your merchandising decisions!

Everyone has their opinion on how to run a retail store and how to raise cash. The truth is there is only one correct way to run a store AND to raise cash – open to buy planning. Every problem in retailing comes back to your buying. Buy the right items in the right quantities … Read more

Open To Buy is your road map to Success!

Remember the guy who was too proud to ask for directions no matter how far out of the way he went. Sounds like some retailers I know. Technology has helped drivers with GPS, navigation systems and phone directions and technology exists to help retailers as well. It’s really sad that so many retailers resist using … Read more

Turn up PROFITS when you turn up TURNOVER!

The difference between retail (definitely an investment) and other investments is YOUR ability to turn over your dollars at a rate that YOU determine. Put money into any other investment and you are at the mercy of others. Invest in your store and you have the opportunity to turn over your dollars at an increased … Read more

Overbuying can lead to death – for your store!

Like any addiction, it probably started by pressure on your ego. The roots of most bad habits can be traced back to social pressure. The difficulty is kicking the habit before it’s too late. It is so easy to overbuy, because we love merchandise, that’s why we’re retailers. It certainly doesn’t help that the reps … Read more

A Parable for Retailers

Once upon a time in a town just like yours there was a retailer just like you. He loved to buy and had the ability to select terrific merchandise. But he always seemed to overbuy. He was offered so many deals, discounts and dating plans that he just couldn’t resist buying MORE. He figured his … Read more

Are Items or Quantities more important to your Buying?

A long time ago, I coined the phrase, “Buying the right items brings in the customers, but buying the right quantities brings in the profits.”  And, of course, it’s still true.  Most retailers have little trouble finding great items to fill their stores and enchant their customers.  You know your customer, their tastes, their buying … Read more

Is Buying Art or Science?

That’s a topic that has been debated for many years. Most retailers would tend to line up on the “Art” side of the fence because they are more creative people and feel if they buy the right items all will be well. But even so, it’s somewhat of a defense mechanism to rationalize not doing … Read more

When your OTB is purring, your store will be roaring!

It’s really pretty simple. Everything that happens in your store boils down to your buying. Buy the right items in the right quantities and you’re going to be a rousing success. Buy the right items in the wrong quantities and you’re going to be behind the 8-ball. Even if you buy the right items, you … Read more

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