Merchandise Planning : Retail KPI’s

Merchandise planning at the most basic level is about

1. anticipating customer demand, then
2. planning your inventory needs to meet that demand while
3. satisfying the company’s financial objectives – to maximize profit.

In this video training mini-series, we continue the topic of inventory planning to cover some of the commonly used performance metrics used in merchandise planning.

Retail Sales Performance Metrics

Learn about

• Stock to sales ratios and formulas
• Sell thru percentage and formulas
• Best Practices examples

In addition to the sales performance metrics discussed in the last video, several inventory performance metrics are also used in MFP. Let’s have a look.

Inventory KPI Metrics

1. What are Weeks of supply and weeks of supply Formula
2. What is  Inventory turn and Inventory turn Formula

Now that you understand the basics of how to plan for customer demand – sales planning, and how to plan your inventory to meet that demand, Let’s discuss margin planning.