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01

WINTER

Retail

Template

Rules & Formula

(Fashion)
02
100
90
80
70
60
50

1st Qtr
40

2nd
3rd

30

4th

20
10
0

A

B

C

D

It’s all about analytical
Inventory
• COGS = Beginning Inventory + Purchases Ending Inventory
• (Stock Turn) :Turnover = Net Sales ÷ Average
Retail Stock
• Quick Ratio = Current Assets - Inventory ÷
Current Liabilities
• Average Inventory (Month) = (Beginning of
Month Inventory + End of Month Inventory) ÷ 2
03
Pricing & Margin

Markdown
Pricing & Margin
• Cost of Goods + Markup = Retail Price
Retail Price - Cost of Goods = Markup
Retail Price - Markup = Cost of Goods
• Contribution Margin = Total Sales - Variable
Costs
• Gross Margin = Total Sales - Cost of Goods
• GMROI (Gross Margin return on Investment) =
Gross Margin ÷ Average Inventory Cost
• Initial Markup % = (Expenses + Reductions +
Profit) ÷ (Net Sales + Reductions)
Pricing & Margin
• MM (Maintain Mark up) = (Original Retail
- Reductions) - Cost of Goods Sold
MM % = Maintained Markup ÷ Net Sales
Amount
• Margin % = (Retail Price - Cost) ÷ Retail
Price
• Markup = Retail Price – Cost
• Markup % = Markup Amount ÷ Retail
Price
Pricing & Margin
• Reductions = Markdowns + Employee
Discounts + Customer Discounts + Stock
Shortages

• OTB (retail) = Planned Sales + Planned
Markdowns + Planned End of Month
Inventory - Planned Beginning of Month
Inventory
04
Sales
• Sales per Square Foot = Total Net Sales ÷
Square Feet of Selling Space
• Sell-Through % = Units Sold ÷ Units
Received
• Gross Sales ÷ Number of Transactions =
Sales per Transaction
• Net Sales ÷ Number of Employees =
Sales per Employee
Retail planogram

05

Product placement and improved sales are just two very
basic reasons a retailer should be implementing
planograms in their shops. Planograms provide many other
positive benefits, such as:
•
•
•
•
•
•

Assigned selling potential to every square foot of space
Satisfying customers with a better visual appeal
Tighter inventory control and reduction of out-of-stocks
Easier product replenishment for staff
Better related product positioning
Effective communication tool for staff-produced displays
Elements of Effective Visual Merchandising
• Balance: Asymmetrical rather than symmetrical balance
with the display.
• Size of Objects: Place the largest object into display
first.
• Color: Helps set mood and feelings.
• Focal Point: Where product and props/signage and
background come together.
• Lighting: Should accent focal point, if possible.
• Simplicity: Less is more so know when to stop and
don't add too many items.
THANK YOU

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Retail

  • 3. Inventory • COGS = Beginning Inventory + Purchases Ending Inventory • (Stock Turn) :Turnover = Net Sales ÷ Average Retail Stock • Quick Ratio = Current Assets - Inventory ÷ Current Liabilities • Average Inventory (Month) = (Beginning of Month Inventory + End of Month Inventory) ÷ 2
  • 5. Pricing & Margin • Cost of Goods + Markup = Retail Price Retail Price - Cost of Goods = Markup Retail Price - Markup = Cost of Goods • Contribution Margin = Total Sales - Variable Costs • Gross Margin = Total Sales - Cost of Goods • GMROI (Gross Margin return on Investment) = Gross Margin ÷ Average Inventory Cost • Initial Markup % = (Expenses + Reductions + Profit) ÷ (Net Sales + Reductions)
  • 6. Pricing & Margin • MM (Maintain Mark up) = (Original Retail - Reductions) - Cost of Goods Sold MM % = Maintained Markup ÷ Net Sales Amount • Margin % = (Retail Price - Cost) ÷ Retail Price • Markup = Retail Price – Cost • Markup % = Markup Amount ÷ Retail Price
  • 7. Pricing & Margin • Reductions = Markdowns + Employee Discounts + Customer Discounts + Stock Shortages • OTB (retail) = Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory
  • 8. 04
  • 9. Sales • Sales per Square Foot = Total Net Sales ÷ Square Feet of Selling Space • Sell-Through % = Units Sold ÷ Units Received • Gross Sales ÷ Number of Transactions = Sales per Transaction • Net Sales ÷ Number of Employees = Sales per Employee
  • 10. Retail planogram 05 Product placement and improved sales are just two very basic reasons a retailer should be implementing planograms in their shops. Planograms provide many other positive benefits, such as: • • • • • • Assigned selling potential to every square foot of space Satisfying customers with a better visual appeal Tighter inventory control and reduction of out-of-stocks Easier product replenishment for staff Better related product positioning Effective communication tool for staff-produced displays
  • 11. Elements of Effective Visual Merchandising • Balance: Asymmetrical rather than symmetrical balance with the display. • Size of Objects: Place the largest object into display first. • Color: Helps set mood and feelings. • Focal Point: Where product and props/signage and background come together. • Lighting: Should accent focal point, if possible. • Simplicity: Less is more so know when to stop and don't add too many items.