BUSINESS PLANNING FOR RETAILERS: TRANSFORM SALES AND PROFITS INTO PRODUCT VOLUME

BUSINESS PLANNING FOR RETAILERS: TRANSFORM SALES AND PROFITS INTO PRODUCT VOLUME

BUSINESS PLANNING FOR RETAILERS: TRANSFORM SALES AND PROFITS INTO PRODUCT VOLUME



Exact, targeted costing is an essential part of your business plan. For many retailers, it's a challenge to align product volumes with sales and profits in their fiscal year. But this coordination is important if you want to convert your sales and profits into predictable product volume for the coming year. However, integrating sales and product quantities can be difficult. Here are the key points to keep in mind:

1. Automation of your retail business plan
A retail business plan includes important aspects of the retail business, such as: financial planning, seasonal planning, merchandise planning, preseason business planning, and open-to-buy planning. Business planning should incorporate these considerations and define the framework for financial planning as well as short-term and long- term sales goals.
Business planning for a retail store should include a flexible business model, forecasts, and a revenue management strategy. Automated processes for transferring and analysing legacy data provide sales forecasts. The data automation includes seasonality, holiday times and costs. Top-down objectives allow managers to fine-tune the retail business plan, taking into account aspects such as closing times, maintenance times, and employee absences.

2. Sales volume by product category
This data is based on store sales and is an important instrument of product distribution within a given category. Sales volume information by product category helps executives to determine the sales share of specific products within a category. All-commodity volume is the total sales volume of the fiscal year, including store data and larger geographic areas. Pattern-based software systems and automated, cloud-based capabilities are being used to further personalise the business plans for retail stores.

3. Product volume variance
What does this mean? This value defines the overheads in relation to the number of items purchased, i.e., the difference between the forecasts and the actual product units purchased in a given period.The option to automatically calculate product volume variance, be it short-term or long-term, makes it much easier to integrate forecasts and success monitoring in your business planning. If a reduction of procurement costs is part of your business plan, it may be important to consider modernising your budgeting software to identify and define cost saving potential.

4. Concept, planning and execution of your retail business plan
Customised solutions enable companies to communicate with different online systems, including cloud software, and define various workflows arising from a large number of individual processes. The standardisation of information input and output such as calling an API function or SQL database supports modern data standards and uses predictive analytics. This means that retailers are able to plan and manage both their specific inventories and their seasonal and annual promotion campaigns and also use this insight for the business plan of the coming year.

We use cookies to give you a better user experience. If you continue to use our website, you agree to its use.