Owning a retail store can be quite daunting. There are so many factors to consider such as the items you need to keep stock of, overhead expenses and stock prices. Another facet of the business that needs to be accounted for is planning how much stock to purchase and when to purchase particular retail products.
When do you replenish stock?
Firstly, you need to consider the popularity of a particular product. If the product is not that popular and does not generate sufficient sales during a one week period, you may have to consider removing the product from your stock list. Before you do this, though, consider the following. Is the product perishable such as milk or bread that has only a one or two day shelf life? If it is and you still have plenty stock left at the end of the two day period, go back to your sales figures and check how many have been sold. If you sold one hundred loaves of bread, for example, where you had two hundred loaves it may be advisable to cut down on these purchases to one hundred units plus ten percent. Thus, your next purchase of bread will only be one hundred and ten loaves and not two hundred. Other products have longer shelf lives such as washing powder or deodorants. These products can remain on the shelf for longer periods so these items can be assessed every three months to check whether you are overstocking. Again, check your figures over the three month period and check how much stock you have left. Then adjust your buying strategy accordingly for these products.
Next, you need to consider your budget. Find out from your local wholesaler if there are any bulk discounts available or whether you can receive free delivery when purchasing certain quantities. When you buy in bulk, you need to try and save as much as possible so that you can pass the saving onto your customers. This will, in turn, encourage customers to come back to you because your prices are affordable.
Finally, consider the season. You will require more stock during a busy season such as at Christmas time than you would in January. Check the trends of all your retail products as to when customers are buying more and during which periods sales are lower. Adjust your stock purchases according to the demand of the season so that you don’t have too much stock during a low season.
These are three main factors to consider when stocking the shelves of your retail store. Be sure to communicate with your general wholesaler on a regular basis to find out what the trends are of certain products.
J&E Cash ‘n Carry is one of South Africa’s biggest wholesalers in the following categories of products: Cosmetics, Groceries, Sweets, Personal Care, Household, Health, Beauty, Baby, Hardware, Electric & Stationery. We supply traders only, and offer the highest standards of service, the cheapest deals, and the best buying experience.