RETAIL MANAGEMENT STRATEGY:

MANAGING THE MERCHANDISE

Group 1
AKHIL CHAUDHARY PGP/05/005
RAHUL SARDAR PGP/05/035
LAL RAMDINA PGP/05/027
VIMAL BIJORIA PGP/05/050
 IF YOU W ERE SUNITA, WHAT “NE W PRODUCT
INTRODUCTION POLI CY” W OUL D YOU PUT IN
PL ACE?

• The new product policy would include a certain amount of margins to be

promised
• Put the new products on trial for a week and see its performance before
stocking the stores with it
 HOW CAN YOU INCREASE OVERALL
MARGINS BY 2%

• By removing skus having low performance and including high margin

competitor products
• See their performance for a short period of time and then filter out low
performance sku
• Repeat the process
 S INCE T HERE IS SPACE CONS TRAINT IN THE
S TORES , WHICH ARE THE S KU’S T HAT YOU W OULD
R EMOVE

• Low Performing SKU’s

• Retain only best selling Sku’s and replace the rest.
 IS THERE ANY OTHER DATA YOU MAY
REQUIRE TO THE THE ABOVE DECISIONS?

• Inventory Turnover = COGS/Average Inventory

• Customer order fill rate= Orders that are shipped in full/total number of orders
• Cost of Carrying=Carrying costs/Overall costs
• Opportunity costs
• Average days to sell inventory=Average inventory/COGS*365
• ROI = Sales/average cost of inventory*Gross margin
• Item fill rate= Received Quantity/Order Quantity
• Cycle Time=Actual Ship Date- Customer Order Date
• Average inventory = (Current inventory + Previous inventory)/2