INITIAL ANALYSIS & OUTCOMES
We capture historical sales over two years to review trends and growths.
The current Hierarchy will be used for data capture, and alternate roll ups set up to have Brand and Category by Gender review available.
Forecasting
Future sales will be forecast based on historical data and forward trends, including scenario planning to accommodate the recovery of sales post lockdown. Again this will be reviewed in alternate roll-ups of Brand and Category by Gender.
This is finalised in consultation with the Client. Stock is applied where possible if there is historical month-end stock stamped to view historical clearances and stock turn. If no historical stock is available at the category/ brand level under review, we will use the current stock on hand.
OTB ( Open To Buy )
OTB is generated to fulfil the top line stock requirements across Brand and Category in line with Stock Cover, and Stock Turns defined by Client.
If ongoing management of the sales forecasting and stock is required, we update actual sales either monthly, bi-monthly or weekly with forecasts to month-end. Incoming stock is managed and updated monthly, and the forward sales are re-projected in line with trade, markdowns and stock availability.
Optional extras
Width and Depth Analysis over one year or past season is available at an extra cost. This is generated by using Pareto analysis by store by Brand/Category. Based on the number of Brands you may choose to limit it to the Brands driving 80% of company turnover.
SALES
Our initial analysis is done on a data set of sales by store by month in (Currency) value including or excluding VAT for a period of 2 years dependant on availability.
The fields required are: (through the till if available)
- Currency Sales
- Unit Sales
- Gross Profit
- Discounts
The Sales data is analysed for trends and growth relative to the current Hierarchy Brand/ Category /Gender and overall business trends, and movement of sales by the fields analysed is identified outside of the trends and growth patterns.
If there is an application of attributes e.g. Colour, End-Use (Core vs Fashion) or any other attributes that you have captured, we will include these in consultation with you.
STOCK
(Currency) Value including or excluding VAT is then applied to the Analysis at the current date – we will apply it to the historical information if you have month-end stock data saved, but if not it’s not a problem.
The Stock at the time of application will give us a view of the Stock Cover the business is currently running at by Store, Brand/Category by Gender.
OUTCOME OF
THE ANALYSIS
Review of current Hierarchy, contributions of Sales Values and recommendations on Hierarchy structure, alternate roll-ups and applications for reporting and OTB generation.
Reporting by Store and Product roll-ups across the fields analysed comparing Sales, Average Price, Gross Profit and identifying contributions to total as well as the opportunity for growth.
A Pareto Analysis on what is driving sales @ 80% of total down to Product/Style/SKU depending on your data. Sales Densities by store (for this we will need the size of each store too) Markdown Analysis – If there is discounting data available on the sales reports.
OUTCOME OF STOCK APPLICATION & FORECAST OF SALES
Sales are forecast for a year by Brand and Category by Gender in consultation with the Client. We can do one of two things. Forecast based on our analysis and scenario planning methodology and compare to the company view/financial forecasts for the period or we can use the company financial forecasts and ensure the product forecast aligns. The outcome of this would be improvements or changes we think could be made to the value of stock holding to achieve sales.
A measurement of Forward Stock Turn commensurate to the margin and cash flow requirements of the business and how this varies by store and category.
Don’t take our word for it…
“Retail Detail’s business partner mindset and industry expertise have solidified our stock planning, month buying, Financial P&L by store planning, staff recruitment, training and procedures. By finding gaps before we do and incorporating a more scientific approach, our business has grown exponentially.”
“Retail Detail’s experienced team has been integral to optimising and overseeing markdown strategies and stock control processes. Their highly-networked recruitment division has attracted a calibre of resource that inspires performance culture within our organisation, while their expert-led insight continues to help strengthen and grow our business every single day”.
