6 ways to maximize profits from a post season clearance sale

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The 6 strategies
How to plan for next year?
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Get to know the exact stock levels across the
enterprise
Execute an ABC and FSN analysis by store
◦ ABC analysis is by the items MRP
◦ FSN analysis is by the speed of sale (Fast, Slow, Non
– moving items)
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You now know what sells where
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Results of FSN by ABC analysis to be
exploded to the store level – to understand
what sold the most at which store
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Segregate perishable goods from nonperishable ones – you want to sell them first
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Identify the existing margins
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Execute the margin protection exercise
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Plan your markdowns
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Promotions are a strategic tool to increase:
◦ Footfall
◦ Market share
◦ And of course – revenue
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Promotions are broadly of 3 types
◦ Buy some Get some
◦ Promotional sale discount on total bill value
◦ Sale and Volume discount on number of items bought
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Advertise in:
◦ Local Print Media
◦ Social Media
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Psychologically one tends to buy what the
mannequin is wearing
◦ Place the item in an eye catching position in your
store
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Balance the display
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Uniform lighting
◦ Place the darker items near the bottom of the
display
◦ Should not be only from one direction, but uniform
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Remove the clutter
◦ Make it easy for the customer to move around
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Get in touch with your most regular
customers – send mailers
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Additional points for shopping at specific
hours
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Additional points for buying specific items
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Club promotions with loyalty schemes
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Run additional commission schemes for sales
staff
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Post season sales result in heavy footfall
Minimize pilferages by:
◦ More frequent stock takes – preferably daily
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Analyze sales trends more closely across
stores
◦ To ensure effective stock turnover
◦ Timely intervention to fine tune stock levels and
promotions
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Put an OTB (Open To Buy) plan in place
◦ Create sales plan based on previous sales
◦ Create budgets
◦ Execute monthly OTB runs
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Put an BI (Business Intelligence) tool in place
◦ Analyze sales trends over the year
◦ Timely fine-tune sales strategies
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Put a forecasting application in place
◦ Create accurate sales and merchandize forecasts
CitiXsys Americas Inc.
(USA)
New York
Rockefeller Center
7th floor, 1230 Avenue of the
Americas
New York NY 10020
USA
T: 1 212 745 1365
F: 1 646 349 3441
E: [email protected]
New Hampshire
264 South River Road, #474
Bedford NH 03110
USA
T: 1 603 232 8252
F: 1 646 390 1988
E: [email protected]
Chicago
22nd Floor, The Merc, West Loop
30 South Wacker Drive
Chicago, IL 60606
USA
T: 1 630 359 5956
F: 1 630 697 1315
E: [email protected]
CitiXsys Canada Ltd.
(Canada)
CitiXsys Australia Pty Ltd.
(Asia Pacific)
Toronto
8th Floor, 2425 Matheson Blvd.
East
Mississauga, ON L4W 5K4
Canada
T:1 905 361 2886
F:1 905 361 6401
E: [email protected]
Sydney
Tower 2, Level 20, 201 Sussex
Street
Sydney NSW 2000
Australia
T: 61 2 9006 1616
F: 61 2 9006 1515
E:[email protected]
CitiXsys UK Ltd.
(UK & EMEA)
London
Lakeside House, 1 Furzeground
Way
Stockley Park, Uxbridge UB11 1BD
United Kingdom
T: 44 0 208 622 3006
F: 44 0 845 280 8848
E: [email protected]
CitiXsys TechnologiesLtd.
(India & South Asia)
New Delhi
A-24/5, MCIE, Mathura Road
New Delhi 110044
India
T: 91 11 42696666
F: 91 11 42696600
E: [email protected]
Melbourne
Level 27, 525 Collins Street
Rialto South Tower
Melbourne 3000
Australia
T: 61 3 9935 2916
F: 61 3 9935 2750
E: [email protected]
Perth
Level 29, Forrest Centre
221 St. George Tce
Perth WA 6000
Australia
T: 61 8 9288 0662
F: 61 8 9481 3177
E: [email protected]
www.citixsys.com
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