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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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Category Management new trends to Boost Sales in 2021

Shopper Motion

They also contribute to the profitability of the company by fostering sales via marketing and in-store promotions and they manage everything related to product inventory, either they order new items or try to improve the speed of inventory turnover. Example of the power hours metric from a supermarket.

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How the Supply Chain Disruption Is Sparking Holiday Risk & Resilience

Rangeme

Recent labor shortages prompted some supermarket chains to shorten their store hours. Beauty rival Sephora is using artificial intelligence (AI)-based demand forecasting to increase inventory turnover and product availability with greater accuracy and efficiency. 14 Lempert, Phil. What’s Keeping Your Grocery CEO Up at Night.