Maximizing Retail Sales with New Inventory

Vilfredo Pareto's 80/20 rule states that 80% of the wealth is controlled by 20% of the population.

In the retail industry, the 80/20 rule can be applied to sales and inventory, where 80% of sales come from 20% of the inventory investment.

Retailers should focus on identifying and maximizing the performance of the 20% of inventory that generates the majority of their business.

🔑 Assortment creep is the gradual increase in inventory styles and items that adds to inventory levels without significantly increasing sales.

💡 Studies have shown that 70-90% of a retailer's sales come from inventory that is 10 weeks old or less.

📈 The power of new inventory is essential for retailers, as it drives a significant percentage of sales.

📦 The financial health of a retailer is determined by the percentage of new inventory they have.

💰 New merchandise sells better than old merchandise, resulting in increased profits.

⏳ Merchandise that remains on the sales floor for a longer period of time costs the retailer money.