Our landlord gave us ten days to quit the temporary location of our second shop in advance of opening in a permanent location next month so we decided on a sale. Below is a picture of the main card aisle with one day to go. The image graphically illustrates the most sought after card categories. The empty pockets make me wonder about the cost of real-estate and stock on the pockets with stock remaining.
If cards are not selling when they have been discounted 30% and then 50% then one has to question whether we should have them in the first place. Of course, every retailer wants every item to be the fastest mover. I appreciate that is not practical. However, the many empty pockets in the women’s section versus almost no empty pockets in the men’s makes me want to cut back on men’s titles. Cards stock needs to turn at least three times a year in a shopping centre to pay for the real-estate. The titles left after steep discounts are the titles not performing.
A spreadsheet with category numbers sold x GP to give profit contribution, with the results then sorted from most to least would be fascinating. I use something similar when analysing menu profitability.
80/20 lives, but the concept is largely unknown by most small operators.
what have HM been showing you in their 3 monthly business support meetings?