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What is GMROI in Retail? (Formulas, Benchmarks, Examples)

Retalon

It is a measurement of the cost of purchasing, transporting, and holding inventory, plus the cost associated with fulfilling customer orders for that inventory — compared to the gross margin you receive from selling that same inventory. Ultimately, a “good GMROI” will depend on how much control a retailer has over costs and prices.

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12 Critical Retail Industry Performance Metrics (2020)

Retalon

The inventory sitting in stores and warehouses is the single biggest investment that a retailer makes. Throughout the history of retail, success and failure has come down to how well a company manages — and profits from — its inventory investment. in-stocks on the retailer’s most important and profitable items in their business.