INDEPENDENT RETAILER magazine is now the official news outlet for Wholesale Central visitors.
Each monthly issue is packed with new product ideas, supplier profiles, retailing news, and
business strategies to help you succeed.
See new articles daily online at IndependentRetailer.com.
Jul 1, 2009
Rosenblum noted that retailers who are worried about overbuying merchandise may experience high levels of out of stock problems. If that turns out to be the case, it will be even more important to take several steps to increase gross margins on merchandise sales, to help compensate for the loss of revenue. Retailers working with lean inventory levels should take a harder look at free shipping offers and how they will impact product sales, she also advised. Work with merchandise suppliers to apply the steepest promotional price discounts to products that will be available in the highest volume, she suggested.
"Work with merchandise vendors to figure out what your sacrificial lambs will be and how you can work together to maximize order fill rates," Rosenblum said. She suggested that arranging for some suppliers to ship heavily promoted products directly to customers could be a good option for maximizing both order fill rates and gross margins.
"We know there's a lot retailers cannot plan, and we don't know what the economy is going to really look like," Rosenblum acknowledged. "But merchants can plan for many contingencies. A retailer winner will do that now, to have a better holiday season," she concluded.
Topic: Wholesale News
Related Articles: retailers
Entire contents ©2018, Sumner Communications, Inc. (203) 748-2050. All rights reserved. No part of this service may be reproduced in any form without the express written permission of Sumner Communications, Inc. except that an individual may download and/or forward articles via e-mail to a reasonable number of recipients for personal, non-commercial purposes.