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What is Inventory Turnover in Retail? (Formulas, Benchmarks, Examples)

Retalon

One of the key inventory metrics retailers track is inventory turnover. Inventory turnover measures how many times a company sells and replaces its inventory during a period. It indicates how efficiently inventory is managed and whether excess inventory is tying up too much capital.

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12 Critical Retail Industry Performance Metrics (2020)

Retalon

Jump Ahead Most Important KPIs for the Retail Industry in 2020 Examples of Retail KPIs that Maximize Inventory ROI 1. Inventory Turnover Ratio 3. Inventory Turnover Ratio. The Inventory Turnover Ratio represents the total cost of goods sold over a period divided by the average inventory cost.

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7 KPIs to Track & Harness Your Retail Store Performance

RETAIL MANAGEMENT SOFTWARE

For retailers in apparel, footwear, jewelry, sporting goods, specialty, home goods, and department stores, understanding performance at a granular level isnt just helpfulits essential. Jewelry Stores Track high-value item sales and conversion rates. Sporting Goods Adjust inventory by season and event cycles.

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5 Ways Agentic AI Is Powering Smarter Retail Operations

RETAIL MANAGEMENT SOFTWARE

Whether you’re in apparel, footwear, jewelry, or home goods, agentic AI is redefining how retail works in 2025 and beyond. Retail Impact: Higher inventory turnover Lower carrying costs Increased product availability 2. Here are five ways AI agents in retail drives smarter, faster decision-Making and operations.