Do you have inventory that is over a year old? It could actually be costing you money. It does so by taking up space that profitable product could be using and by requiring regular movement.
Sometimes, as a shop owner, it can be difficult to let go of merchandise because we know how much it has cost and how much work we have put into selling it already. Unfortunately, the time comes where that merchandise starts costing us money. The general rule of thumb is that merchandise shouldn't hang around your store for more than a year, so you need to consider clearing out aged inventory to make room for newer, more profitable items.
How is it costing us money?
Aged inventory takes up space and ties up inventory dollars that could otherwise be spent on new, more profitable merchandise. It can also add clutter to the store or space, inhibiting sales of new product. Once you consider that, consider also how many times you've paid someone to move that product or moved it yourself. Not only is their time worth money, but so is yours! What could you have been doing to make the store money instead of moving aged merchandise?
Okay, that's great, but what are some solutions to this problem?
Remix, repackage, reintroduce, or repurpose items before having a clearance sale. Need to know more? Sign up to receive the Flourishing Retailers Tip, sent directly to your inbox, and receive answers plus a special bonus tip this week! All you have to do to sign up is click here!
Avoid scattering key items around the store as they can lose their impact and clutter the space. Grouping merchandise makes it stronger.
I know, it can be so tempting... and sometimes you worry that if you don't have something in a few places, your customers will miss it! The truth is if you have one here, one over there, one in the back of the store, and one at the front, customers are even more likely to miss it.
Creating a strong presentation with emphasis on key items ensures that they will have impact and be visible to customers as they are passing by.
I hear a lot of people say that it works in their store; that their customers are different. If that's you, just try grouping a key item and making it the focal point of a display for a few weeks. You may find that it works even better for you.
When purchasing for your store, make sure you have a plan. This could include a financial plan, merchandising plan, theme plan and so-on.
Another thing to think about before choosing your product is the physical space in your store. What merchandising are you planning for the next few months? Are there any specific stories or themes? What holidays and events are coming up? What exciting things are on your marketing calendar?
Good luck and happy selling... and buying!
Have you got questions for Melissa? Check us out on facebook, twitter, Pinterest, or contact us here.
It’s not too early to begin showing off your spring merchandise! If you have it in stock, get it out where customers can see it.
Right now, your main focus may be Valentines Day or sale merchandise, but that doesn't mean you have to hide spring! Customers will be excited to see something new, fresh, and promising of warmer weather, so get it out of the back room or storage. It doesn't have to be in the most prominent spot just yet.
Need help with spring displays? Check us out on facebook, twitter, Pinterest, or get in touch with us today!
This week’s Flourish Tip was all about looking to large chain retailers to find out when to display seasonal merchandise.
Think of every holiday or end of season as a big expiry date looming over the merchandise. After that date passes, the merchandise is no longer profitable to you. You either need to sell it at a large discount or pay someone to pack it up and then have it take up storage space which you are also paying for! Not to mention, it eats up inventory dollars for that holiday or season during the next go-around!
With that being said, earlier is often better when it comes to seasonal merchandise and your profits. Obviously, this is within reason, as you don’t want to have Christmas merchandise in your store in July or Valentines merchandise hanging around in December, but you want to make sure that you’re giving your merchandise ample opportunity to sell before it’s “expiry date”.
This is where large chains come in handy! They have the research and experience behind them and it’s worth checking them out for a cue as to when to put out yours! Visit a nearby mall for stores with similar offerings to your store and make notes about when merchandise is going out!
Here are some guidelines that will help you in the next few months. If you have fall merchandise, it should be out for customers to view starting in August. Even when the weather appears nice, people are thinking ahead to upcoming seasons and many want the newest and latest buys! Christmas related merchandise should go out by November 1st. If you are a retailer that doesn’t sell much Halloween related product, then once Canadian Thanksgiving is over, it’s your time to get Christmas in place! Yes, many customers will comment that it’s early, remind them that it’s only a couple of months away! And many will balance those customers out and start purchasing gotta-have-it items right away.
If you’re still not sure when to get things out, hire an expert! And remember; adjust your ordering according to when merchandise needs to be in-store after your reconnaissance mission to the mall. You’ll be happy you did!
Happy Selling! Need help creating amazing seasonal displays? Call or email us today!
Melissa Mainville is the owner and operator of Flourish Design & Merchandising. She has a passion for retail and tons of experience in the industry. Learn more here.