Managing Inventory Keeping Inventory Fresh and Maximizing Sales

Managing Inventory Keeping Inventory Fresh and Maximizing Sales

Managing Inventory • Culling • What is culling? • Why culling is one of the most important operations in a Thrift Store? • Creating a System • Options to identify aging inventory • Scheduling/Calendar options • Managing the process • What does the Store do after it culls? • Questions?

Culling • What is culling? • The process of removing aging items from store inventory in order to have Fresh merchandise for Customers to choose from. • Why stores need to Cull • Thrifters know the merchandise in a store and are constantly looking for “new” items. The “fresher” a store’s inventory the more times a customer will visit in a week/month. • The longer an item lingers in a store the less likely it is to sell regardless of what it is. If it doesn’t sell in 1 week or less the chance of it selling drops to 30% unless something is done. • Culling provides the opportunity to place new items on the floor, thus driving sales.

Creating a System • Options to identify aging inventory • Colored tags, stickers, plastic taggers, highlighter, etc.

Creating a System • Scheduling/Calendar options • Decide on length of the cycle (3 -6 weeks) • Draw it up and follow it

Creating a System • Managing the process • Exit Strategy • Track departments that are culled to manage stock by specific category • Make good business decisions depending on availability of goods • Not all items should be culled: men’s jeans, seasonal during season, etc.

What does the Store do after it culls? • Clearance rack with single price point • Pound Store • Special needs donations • Recycle

QUESTIONS ?