Retail inventory management is essential for optimizing cash flow and maintaining customer satisfaction.  This guide presents a step-by-step approach to calculating your retail inventory position. You’ll learn strategic insights and methods to drive significant improvements in your business operations.  Step 1: Determine Your Cost of Goods Available for Sale Start by calculating the total cost of your goods available for sale. This includes your beginning inventory plus any purchases made during the period. This step provides a foundation for understanding the total value of your sto ..read more

Stock to sales is a pretty crucial metric as it measures your investment in inventory. How much inventory do I need to meet my revenue? It is also called inventory to sales ratio. At a very fundamental level, it answers the question of how much inventory is required to drive sales. The basic and simplest calculation is Beginning of the Month Inventory/Sales. We use the beginning of the month instead of average inventory to focus on meeting beginning of the month stock levels. We know from 35 years of experience, that starting each month with the desired stock levels of fresh inventory drives p ..read more

I was communicating with M1 Retail Expert, Natalie Woods, about a client's unwillingness to let go of 2 classifications that were doing volume but losing money. Meanwhile, there were 4 other classifications that had the ability to grow, as they were turning quickly, had great sell-through at regular price, and had plenty of open to buy. However cash was tied up in those other non performing classes. The solution seems easy on the surface, liquidate, what is not selling and invest in the opportunity. I questioned Natalie and she expressed it well, “When you are emotional…your thoughts don’t alw ..read more

As the buds bloom and the weather warms, indie retailers gear up for one of the most lucrative seasons of the year: spring. With consumers eager to refresh their wardrobes and embrace the spirit of renewal, now is the perfect time for indie retailers to capitalize on this opportunity.  To ensure you make the most of the spring season, here are ten (10) essential strategies to maximize your sales: Invest in Open to Buy Planning Analyze Past Spring Sales Data Spruce Up Your Retail Merchandising Focus on Seasonal Trends Enhance Online Presence Implement Cross-Promotion Strategies ..read more

  Since school will be out for most students in the next 8 to 10 weeks, and Spring has arrived, making and preparing vacation plans for many families is underway. I was talking to Evan Wise, M1 Co Founder, about our own family vacation plans, and then he asked a great question about Indie Retailers. How well do their businesses run when they are out? As we talked he suggested asking the following… Which question below best fits your current situation? I'm comfortable going away for 3 days.     Yes  No I'm comfortable going away for a week.    Yes  No I ..read more

  Retailers across the globe grapple with the perennial challenge of balancing inventory to meet consumer demand without succumbing to overstock or stockouts.  In this complex retail landscape, the advent of advanced inventory planning software offers new efficiencies to bridge the gap between surplus and scarcity. By leveraging sophisticated analytical tools and algorithms, this innovative technology enables retailers to:  fine-tune their inventory levels, minimize waste, and maximize profitability.  The essence of this transformation lies in aligning inventory pra ..read more

  The miracle of compounding in investments is a powerful phenomenon that happens when an investment sits over time in an instrument that yields interest. It grows as each year the interest earned is added to the principal.  For example, If you invest $100,000 at 5% over 5 years it is worth $127,628 after 5 years. The account has grown by 27.6%. This is sometimes thought of as a snowball effect. Initially it is small, but as it rolls downhill it gathers more snow and grows larger and faster. Time and achieving a specific interest rate over time are the two keys. Compounding is not li ..read more

  At the end of his book, Same as Ever, author Morgan Housel leaves the reader with questions rather than conclusions. Questions that he addresses in the book, but now you are asked to answer them yourself including… Am I prepared to handle risks that I can’t even imagine? My hunch is that the indie retailers that made it through the pandemic, are more likely to embrace or at least accept uncertainty. Their confidence bolstered by the experience. However, I also wonder if it has also made us more risk averse. The government bailing us out is probably a once in our history event. Marc ..read more

  Remember what Albert Einstein said: “If I had an hour to solve a problem, I would spend the first 55 minutes determining the proper questions to ask, for once I know the proper question, I can solve the problem in less than five minutes” Asking the right questions is like wielding a powerful tool that can unlock solutions and will deliver actions and decisions that drive positive change. Framing In general, framing refers to the way something is presented, interpreted, or perceived by others. Framing can influence how people think, feel, and act about various topics or issues. Framing a ..read more

  The question often comes up… How much cash should I have in my business? It is not only a good question but also a good goal to achieve. Having adequate liquidity enables peace of mind, creating better focus on managing your business.  When discussing cash on hand we also want to talk about liquidity. For an independant retailer, liquidity can be viewed primarily as cash on hand, which is the money your business has available to spend, either in cash or in bank accounts. Liquidity would also include the value of current assets that can be turned into cash easily. It is import ..read more