Your POS Software is Your Advantage

Several years ago, Wal-Mart discontinued their across the board approach for stocking inventory in all their stores. They finally realized that localizing inventory assortment by the store’s geographic location was far better for continued growth. As a small retailer, you have the advantage of working and living in the area you service. Use your POS software to define your customers and their needs. You can’t be everything to everyone, so use precise information to narrow in on the markets you have an advantage in. Your inventory should be unique and what your customers are asking for, not what you like. Use the three step approach described in an earlier blog and compare department against department, apply that information to your open-to-buy plan and find your best performing vendors.

You need quality information from your POS software to enable you to make the decisions that will allow you to control your niche markets. Big box retailers have cornered the market on cheap, but can’t compete when it comes to being nimble and turning on a dime. When your Retail Stock Ledger tells you that Vendor A has a higher sell through and better turn rate than Vendor B, you now have the information needed to make quick informed buying decisions. Stock less inventory, turn more times and have higher margins is a recipe for success.