If you’re a retail business and offer items for seasonal sale at discounted prices then you’re definitely not alone; while Christmas sales used to commence on Boxing Day they now span all the way to November, with hard-earned consumer cash spent on days such as ‘Black Friday’ having soared from £400 billion in 2003 to more than £600 billion in 2017.
For those businesses currently considering running a seasonal sale, either to stimulate demand or to divest of unused or perishable stock, here are just a few things to consider in order to make sure the reduction in price is the only thing reducing your margin.
Mislabeling of items
When you have a sale, it’s important that discounts are only offered on the products and lines that you want them to be. However, in many cases mislabeling on the shop floor can often mean that items are either inappropriately marked as discounted, or reduced by an incorrect amount.
With a reduction in margin associated on any item sold at a discount, this can lead to retailers making far less on their stock that they believe or in some cases even make a loss.
We’re experienced in helping retail businesses identify these issues so they can address them quickly and maximise the return from any sale.
Staff training issues
This point is often inextricably linked to the mislabeling of products; whilst we’re all human and can sometimes make mistakes, poor or inadequate training of seasonal or part-time staff can lead to large amounts of stock loss and error.
Whilst we’re sure you’ll be committed to training your staff to offer your customers the best possible service, differences in how individuals use your systems and processes mean that this is another common cause of stock loss for retailers across the country so you’re certainly not be alone.
We work with our clients to highlight where stock is being lost or inaccurately attributed in order to increase the accuracy of your understanding of current stock levels and improve your bottom line.
Understanding buying trends and reducing wastage
Whilst stocktaking can be extremely effective in highlighting issues to be solved, it should also be used as a proactive tool that aids your buying decisions. Seasonal sales are often held as a result of holding too much stock over a period of time, meaning that the remaining relevant products and lines are sold at a lower margin to avoid them becoming out of date or even written off.
We provide our clients with the information they need to understand seasonal buying trends and demand, allowing them to make more accurate decisions when it comes to buying volumes and maximising the sale value of any stock purchased.
If you’re wanting to work with a retail stocktaking specialist, we’ve worked with business of all sizes – from local shops to high street heavyweights including Primark. Call our team on 01637 874609 and we’ll be happy to answer any question you have.