Answer to Question #202075 in Management for Shahid ali

Question

You are hired as Store Manager by a Western Wear Fashion Brand. You are asked by your Retail manager to provide you store performance analysis.

Answer 1

The customer traffic was higher during the holiday seasons as more people were interested in buying new fashion wear for their friends and relatives. Foot traffic was important to the retail stores as the sales increased resulting to less stock. The inventory turn was average as the fashion wear sold we replaced within a short period of time which assisted the marketing manager to determine sales and manage the purchase orders. The average transaction which was calculated by dividing the amount of sales by number of transaction indicated that customers spent a lot on fashion wear compared to other products thus a benefit to Western wear fashion brand. To determine return on investment of the inventory gross margin was divided by inventory which showed that ladies wear were more purchased compared to men wear. Some stock ended up to be dead stock thus affecting the company negatively. The company has adopted the strategy of shop display and on time delivery to avoid overstocking.