If your store uses electronic data processing for merchandising purposes, you probably receive such reports weekly or monthly.
If you do not have EDP, or if your EDP reports come only at monthly intervals, there are other ways to obtain daily or weekly sales figures, broken down into major components:
- cash registers with classification keys, which permit sales break downs to be made from the tapes
- analysis of sales slips by classification or price line or both, made daily or weekly in the office or by the buyer or assistant
- analysis of sales people's tallies, after the sales people themselves have tallied their own sales by classification or price line or both
- special tally sheets alongside each register, on which sales people note sales of price lines, styles, etc., that require close watch for a brief period
- daily counts of price ticket stubs or vendor reorder cards with respect to one or two essential features, before these are forwarded to the merchandise control office, the computer, or the vendor
Seeking the Exceptions
It is among the exceptions in stock-sales relationship that your problems and opportunities will be found.
Some stores make the problem of locating these exceptions simple by using exception reporting procedures. This is usually possible only when EDP is used for merchandising purposes.
Certain norms are established for sales and stocks by the buyer and fed into the computer. The computer then prints out information only on those sections of the assortment whose figures differ by a pre-set percentage from the norms.
If you are not fortunate enough to receive such reports, hunt your exceptions among those classifications, price lines, etc., that show sales figures which are unusually high or low in relation to stocks, or in relation to sales for previous periods.
No matter how pressed you may be for time, scan the stock-sales reports you receive promptly. Mark for early attention those figures that are the outstanding exceptions. These are the ones that can least afford to wait.
Best Seller Analysis
A welcome exception to be watched for in sales reports is the best seller. Every department or classification has its share of style numbers that sell noticeably faster than others in the assortment,
Prompt identification and exploitation of best sellers is vital because these items indicate areas in which customer demand is strong, and can possibly be made even stronger.
Exploitation in fashion departments usually does not mean reordering precisely the same item, but examining the best seller for clues to the direction demand is taking, so that other garments in the same "look" or with the same "feel" or of the same color or material can be brought into stock. It is the trend rather than the style number that is exploited.
Recommended procedure: At least once a week, pull all fast selling numbers from stock and place them on a rack together. Examine them for a common factor. When they are segregated from the rest of the assortment in this way, that factor usually stands out -new length, silhouette, neckline, sleeve treatment, fabric, color, texture, or whatever.
Sales in Relation to Stock
Sales figures sound the alert, but to take wise action, you also need stock figures, plus a check as to what is on order.
There may be occasions when a hasty unit count or quick glance at a section of the stock will give you the information you need. Such occasions will probably be few, however, especially if you have branches.
For most purposes, you will need past as well as present figures to tell you whether sales in a given classification or price are gathering momentum or losing it - and to indicate possible reasons.
Unit control systems, manual or electronic, provide such information.
Classification Controls
Classification controls sum up stock conditions and sales activities for related styles or items and thus reveal trends more clearly than either departmental totals or figures for individual styles and items. Figures are usually in dollars only.
A classification is an assortment of items, all of which are reason ably substitutable for one another in the consumer's view. For example: casual skirts, dress shoes, clutch bags.
Classifications are purposely kept broad so that main trends stand out. For example, if all dressy sweaters are in one classification and all casual sweaters are in another, a trend toward dressy sweaters will show up promptly, and more clearly than on records organized by price line, brand, style number, or other element, without reference to classification.
If you operate under classification controls, you should:
- avoid changing classification numbers or reclassifying merchandise on your own
- request needed temporary or permanent sub-classifications within existing classifications
- look to classification data for early indications of needed action, but look to your unit control and your own knowledge of fashion and customer demand to help you spell out the precise action to take.
