What is inventory turn? Turn is where retailers make money.
Max Retail provides our retailer community with educational videos and exclusive content to help maximize your sales! Watch part 4, Intro to Turn, brought to you by Max Retail and Dan Jablons at Retail Smart Guys.
Faster inventory turn frees money for better uses
The faster you turn your inventory, the more money you make. Think of it this way, if I own a store and you own a store, and both of our stores are doing a million dollars a year, but you’re turning at three times a year and I’m turning it two times a year, which means all year long, I’m keeping half a million dollars of inventory in stock while you’re keeping only $333,000 of inventory in stock.
That means you have that much less money tied up in inventory inside your retail business that you can use for other things: for better marketing programs, for better sales programs, to hire someone you want to hire, to redo your store, or to even go on a better vacation.
Turn is where people make money in retail, so really pay attention to how you measure your turn and how you can improve your turn through better planning.
