Human efficiency, ping efficiency, turnover rate, inventory-to-sales ratio. These are some of the more common statistics in the daily operation of retail enterprises, and there is also a less frequently mentioned, but very important data, that is, the dynamic sales rate of goods, which is an important indicator to evaluate the sales of goods of enterprises.
Dynamic sales rate
In layman's terms, the sales rate is a percentage of the quantity sold and the quantity picked up or the original inventory.
Usually, the dynamic sales rate is used to analyze and diagnose the configuration status and circulation of the product items (SKUs) of the store terminals, and finally adjust the product SKU structure of the terminal stores, or adjust the display, or carry out product allocation and other operations. It can be followed on a regular basis as a key metric for endpoint management.
The formula for calculating the dynamic sales ratio:
Dynamic sales rate = number of SKUs of moving goods Number of SKUs in inventory at the end of the period * 100%.
SKU of moving goods: The number of items with sales records in a certain accounting period, including items that are returned after sales and are reflected as zero sales.
Ending Inventory SKUs: The number of items in actual inventory at the end of the period in an accounting period, excluding items that are already in zero inventory, but including items with negative inventory.How to calculate, for example:
For the dynamic sales rate, people tend to think that the higher the dynamic sales rate, the better, and the dynamic sales rate is equal to 100% is normal, and the dynamic sales rate is less than 100% is the unsalable goods. In fact, we should dig out the real problems according to the following four common dynamic sales rate situations in order to bring about performance growth.
Situation 1: The dynamic sales rate exceeds 100%.
This indicates that at a certain point in time, the number of items sold in the category was higher than the number of items currently in stock, indicating that there was a loss of items in the category.
Causes:
out-of-stock of apparel retail goods;
the cessation of the purchase and sale of clothing retail goods;
Clothing retail virtual inventory.
Workaround:Stores have strengthened the control of out-of-stock goods.
The key point of the out-of-stock control of commodities is that our store manager must analyze data regularly and irregularly and conduct on-site inspections in accordance with relevant processes.
In daily business management, we should pay attention to all aspects of data analysis.
Absolutely do not operate according to experience, it can be seen from the data that the marketability of the goods and the regionality and the season and display, the ** of the goods have a lot to do with the goods, the goods that store A is not good to sell is not equal to the store B or store C is not good to sell, the goods that are not good to sell in store A does not mean that they will never be good to sell, we should first find the reasons for poor sales (the reasons for poor sales are: poor display of goods, ** unsuitable for goods), the style of goods is not popular, too many homogeneous goods, etc.)
Ensure the accuracy of the underlying data of the system.
Tips: The following situations must be paid attention to in the elimination of goods:
Dynamic SKU "Current inventory SKU + number of eliminated items: dynamic goods are eliminated, but non-moving goods are not eliminated.
Moving SKUs> Current Inventory SKUs + Number of Eliminated Items: The products that are eliminated in this category should be eliminated.
Dynamic SKU = current inventory SKU + number of eliminated items: not only can the products in this category not be eliminated, but also the number of product items needs to be introduced.Scenario 2: The sales rate is less than 100%.On the face of the data, there are unsalable goods in this category, at least a certain proportion of unsalable items in the accounting period of the inquiry.
Causes:
too many retail items of clothing, especially too many homogeneous goods;
There are structured goods in clothing retail;
The elimination of such commodities is not sufficient or the elimination is disproportionate to the introduction;
The display and cost performance of such products need to be adjusted.
Workaround:Pay attention to find the reason why the product is not sold first:
First, whether the commodity is a structural and seasonal commodity;
the second is to check the sex ratio of the product (whether it is higher than the psychological price of consumers, whether it is higher than that of competing stores, and whether it is higher than similar goods);
the third is whether there are too many homogeneous commodities in this category;
Fourth, the display location of the goods and the best activities and other factors.
Adjust according to the reason for not moving the pin
Strengthen the consumption survey of consumers in the business district, and cautiously introduce new products of this type of goods (cautiously: fully conduct market research, fully analyze, and introduce new products appropriately and cautiously according to the needs of consumers. ）
Adjust the display of unmovable goods, replace the display position of unmovable goods, and increase the amount of goods displayed; increase the intensity of unmovable goods; Change your marketing strategy for non-moving products.
Fully market the ** of immovable commodities and adjust the pricing strategy of unmovable commodities.
Through comprehensive data analysis, increase the elimination of goods.
Adjust the virtual inventory of goods and increase the inventory in a timely manner.
Only through the elimination of the above factors and effective improvement, can we truly determine whether this kind of goods are truly unsalable, and then deal with them.
Scenario 3: The dynamic sales rate is equal to 100%.
The dynamic sales rate is equal to 100%, which on the surface shows that all the products in this category are suitable for the needs of consumption in the business district, and from the back of the data, it shows that there is still room for development in the number of items in this category of goods.
The situation that the dynamic sales ratio is equal to 100% indicates that the category is relatively normal in terms of product structure, but there are some special reasons that will also cause the dynamic sales ratio to be equal to 100%:
The number of missing items that have not been maintained for a long time.
Cash register serial number and typographical errors.
Out-of-stock of products (some active products are out of stock for a long time and structured products are out of stock).
Virtual inventory (there is actual inventory, but the system inventory is already 0).
Workaround:Maintain the number of items in the store on a regular and irregular basis.
The store manager determines the number of planned items for each sub-category according to the product layout and historical data, and then regularly and irregularly queries the "Classified Inventory Detail SKU Report" according to the sub-category to understand the changes in the product SKU and find the reasons for the discrepancies and items.
Strengthen training.
The first is the skills training of cashiers to reduce the cashier serial number and error rate. The second is to strengthen the management of out-of-stock commodities, especially the out-of-stock of some best-selling and frequently sold commodities and the out-of-stock control of structural commodities.
Adjust the virtual inventory of goods in a timely manner.
Strengthen the market research of such commodities, tap the internal consumption power, and moderately introduce new products.
We should see the inner essence through the surface of the data, and do not think that the structure of the number of items in this category is more reasonable, and the premise of determining whether it is reasonable must be eliminated and improved after the above abnormal causes can determine the rationality of the single product structure of classified goods, tap the consumption potential, and introduce new products moderately. Attention should also be paid to: first, the introduction of new products in this category; the second is the ** of the sub-category of goods; The third is how to increase the sales of new products and cultivate more Class A products.
Scenario 4: The dynamic sales ratio is equal to 0
This is a relatively rare occurrence. The dynamic sales rate is equal to 0, which shows that the product structure of the store is unreasonable on the surface of the data.
Causes:
The store did not pay attention to the sales of such goods and did not introduce any new products;
The product category is not reasonable;
There are specific reasons for this type of product, such as a strong seasonality and sales environment;
omission statistics; Long-term shortage, at least in the accounting period there is no purchase, sale and inventory business.
Solution: The store should check whether the business structure of the product is perfect on a regular and irregular basis according to the commodity structure table.
Readjust the product structure table.
Strictly control the shortage of goods, especially long-term shortages.
In general, store operators should be based on dynamic sales data and guided by consumer demand, so as to continuously match and optimize the product structure of stores and consumers in the business district, and ultimately maximize business benefits!