COMPANY PROFILE RTL - Key information to reach your business destination
During the journey, one will be instructed, either by signage or SatNav, where to turn or which road to travel. The SatNav or “tentative passenger” will alert one when you’re driving too fast. A good driver will also be paying attention to the fuel gauge, engine temperature etc., as well as planning to take a break at appropriate intervals. All these factors are like watching the Key Performance Indicators (KPI) in a business. RTL’s system provides retailers with all KPI’s at the press of a button.
Let’s leave the car journey behind and see T Kim de Sylva
oday retailers can no longer run their businesses by the seat of their pants. Just as one would prepare for a long journey - ensuring you have sufficient fuel, maps or
a SatNav, receive traffic alerts informing of any bottlenecks and diversions en route - so do retailers require key information that can assist them to reach their business “destination” efficiently. This is exactly what Retail Technology Limited’s Electronic Point of Sale (EPOS) and Stock Management System provides!” says Kim de Sylva, Business Development Consultant.
Being a successful retailer takes more than buying merchandise, adding margin and selling it. When most retailers first set off on their business journey, they probably had a good idea of what merchandise they were going to sell to their target market, at what price and the intended destination. They had the vision and creativity to put it all together. Along the journey, retailers will have to navigate around diversions where creativity and vision need a bit of extra guidance and pragmatism - just like one would recheck the map to ensure you’re still traveling in the right direction and make the necessary changes rather than steering over a cliff!
Just as there are tools for navigating in
foreign territory, there are tools that retailers can use to efficiently navigate their business, without needing to be a statistician, mathematician or rocket scientist!
The information provided by the system
helps retailers analyse what is happening in their business, identify problem areas and address any issues immediately. Having too little of what is selling well or too much of what is not can have a huge impact on performance and profitability.
how these tools help analyze stock performance and keep retailers heading in the right direction. Retailers can influence performance directly by; increasing/decreasing prices, buying more or less, promoting lines or indeed do nothing. The KPI’s will give you the information needed to make informed decisions.
If in the last week you sold 20 pairs of a style
and your opening stock for next week is 100 pairs then you have five weeks cover before you run out of stock.
Sell Thru Percentage The percentage of a buy that has sold at full
price. Typically, the rest is sold at mark-downs or ends up as terminal (dead) stock. Sell Thru Percentage is important for
seasonal stock, since the goal is to be out of stock of seasonal stock by the end of the season. Therefore, you can look at your year- to-date sales of seasonal stock and be sure that you were out of stock by the end of the season.
Return on Investment (ROI) The number of £‘s the retailer gets back for
every £ invested. This is calculated by dividing the Sales Margin Pounds by the Months passed and multiplying by 12.
ROI will quickly allow retailers to identify the
success of a particular line or style. For example, if you purchase £2,000 of stock, and sold it all in the same year for £6,000, your profit would be £4,000. The return on your investment of £2,000 was £4,000. The ROI is £4,000/£2,000 = 2.
Not all journeys are the same - a Ferrari
Stock turn Refers to the number of times that a stock holding is sold in a specified period of time - usually a year.
If you have an average stock of 1,000 pairs
of shoes in a year and you sell 1,000 pairs every 3 months, your stock "turns over" or is totally replaced, 4 times per year. Therefore, your stock turn is 4.
Week’s cover Refers to how long the stock in store will last
based upon current sales performance. This is expressed in numbers of weeks. This can be reported by style, category, department, store and business.
Footwear Industry Awards – visit our website
www.footwearindustryawards.com
For further information contact Kim de Sylva on 0800 783 2063.
NOVEMBER/DECEMBER 2011 • FOOTWEAR TODAY • 29
would not be ideal over rough terrain, however it would be fantastic on an autobahn! The requirements of a system for general retail are vastly different to those of a shoe retailer. Shoe retailers sell products that come in a number of colours, sizes, fabrics, width fittings etc and their system needs to be able to handle these requirements. With RTL’s experience of over 30 years in shoe retail, its system provides the right tools for this terrain and is used by many indies!
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