Do you really have stock control?

Three crucial steps to grow your gross margin by controlling your stock, from Catherine Erdly, founder of Future Retail Consulting

Often when we talk about improving profitability for retailers, we talk about getting more customers, increasing sales and therefore improving our gross margin. However, actively managing your stock is a powerful way to make significant improvements to your overall cash flow and business performance.

I have spent many years controlling stocks for large retailers, and the first principle that I begin with is to see every item in your store for what it is – a bundle of money. The amount of money that you spend on stock is what makes or breaks businesses, after all, cash-flow is king.

In this article, I have outlined the three steps that you need to take to manage your stock more effectively. Firstly, analyse what you have – reviewing what’s working and what’s not working. Secondly, make any adjustments to your assortment as a result of this analysis. Thirdly, minimise your stock holding where you can.