Improve your Retail Revenue through Retail Analytics
Retailers have a number of ways they can improve or increase their sales or revenue. This blog will focus on two ways to increase this revenue through improved reporting and smart replenishment.
If you use these methods what can you expect as a return, improvements will vary but our customers have seen increased revenue ranging from 2% to 3% and decreased inventory stock levels of 1% to 2% while still fulfilling the needs of their customers and reducing stock outs of products.
Reporting and Analysis
One major area to improve sales revenue is to perform more in-depth analysis of your sales data across your stores, over periods of time; even down to the time of day. This task can be cumbersome but if you have the right products you can produce reports quickly and easily to monitor this information daily.
Professional Advantage Retail Analytics offers tools to allow our customers to create reports that will allow them to drill deep into their data and generate ad-hoc reports on the fly when they see any trends or anomalies.
Here are some examples of reports that will allow you the analysis your data:
Sales Information by Location and Products
This report includes information around sales revenue, sales margins, quantity sold and more. It will allow you to see the information by each location at a glance and drill down to the item level if needed.
Sales by Time
This report will help show how your goods are selling by time of day. This report will help you analyze your labor needs and when your peak sales times are throughout the day.
The types as well as numbers of reports possible to analyze your data are endless. A few additional types could be:
- Sales to Stock Ratio Report
- Gross Margin Return on Investment Report
- Sales versus Inventory Levels or Value
Smart Stock Replenishment and Forecasting
Keeping your stock at optimal levels in a store can be a very time consuming process and generate the potential for overstock or out of stock situations.
To help reduce your carrying costs and make sure you have the right product, at the right store, at the right time, you can lean on tools like smart replenishment tools and demand forecasting.
Inventory replenishment tools can help you do things like stock leveling, moving goods from stores with over stock to stores with out of stock or under stock. These tools can make decisions for you that would take hours upon hours of your time to analyze.
Another method is to forecast your inventory needs based on current sales trends or past sales history. This will allow you to project or forecast your inventory needs into the future and assist you in making better buying decisions along with gaining a better price on the products you need.
If you want to learn more about how your business can improve retail revenue request a demo of Retail Analytics & Merchandise Planning (RAMP)from Professional Advantage.