There are too many retailers who believe that more inventory will equal more sales. While it’s important to have the right amount of inventory to support your anticipated sales at the turn rates you desire, having more than the desired inventory will result in excess invoices and markdowns.

When a customer enters your store, if they are overwhelmed with the amount of inventory, it’s more of a negative than a positive. Too many choices will just lead to confusion and frustration. The last things you want your customer to ever feel is confusion or frustration. Seeing massive amounts of merchandise signals that they are going to have to do a lot of work if they want to find what they might be looking for.

On the other hand, when a customer enters your store and is exposed to great displays that put your merchandise together in groups and make it come alive; their first thought is “I want that.” Just as we eat with our eyes, your customers will be buying with their eyes. Your displays should draw them in so they can immediately visualize themselves in the merchandise. More displays will not only consume space that you might have bought excess inventory to fill, they will lead the customers around the store raising their interest levels. While it is always hoped that your personnel will turn out to be great sales persons, you can always count on your displays to be your best sales options.

So, the answer is more displays. As far as inventory is concerned, you want the right amount of inventory to support your expected sales at the turn rates you desire. Turnover is critical in retailing if you want to make money and they must be a part of your buying plan. Open to buy planning will help you determine the right amount of inventory to buy/receive each month for the next 12 months in each merchandise category to support your sales and yield the turn rates you seek and a positive cash flow.

MYOTBPLAN.COM gives you these answers in the easiest, most accurate, most accessible, most affordable, best supported program. And we’re the only system or service that guarantees your results. Visit us today and call with your questions. It’s the best merchandising decision you’ll ever make for your store.


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