Overstocked, Understocked, Your POS Software Should Tell You
Small retailers are always faced with the problem of creating more revenue out of the existing square footage they occupy. Information gathered with POS Software is a way of determining which department is generating what portion of the store’s overall revenue in relationship to the dollar value of the inventory. Too much inventory that is not turning is as bad as not enough inventory in fast turning departments. The reports you generate from your POS software must be precise accounts of your customers buying habits in the past, an accurate projection of their future purchases and the inventory levels required to satisfy their needs. Buying more inventory than necessary or purchasing the wrong piece selection is a formula for disaster.
Prior to purchasing extensive amounts of inventory or investing in new fixtures or equipment, a store must review their sales performance by department and by vendor and formulate a sales plan or revise an existing plan. Based on trends, the sales plans are adjusted upward or downward so that the right amount of investment is made in each department. The retail stock ledger and a good open to buy plan should accomplish this. If your POS Software has the built in retail stock ledger and open to buy, then developing a good plan should take minimum amount of your time.