How much do you need?

As an independent retailer you know your industry, what you like and the products that work within your brand. Your industry intuition can't be replicated by a formula, and is invaluable to your business.

So you know what you want to buy, what you think your customers will like and what brands are important to your shop. Question is, how much is the right amount to buy?

You need enough to meet customer demand and catch all those sales at full price, but too much, to avoid aging stock. Basically, you need to accurately predict how long it will take you to sell your stock.

Enter the Weeks Cover Report.

Based on past performance, this report clearly shows you how many weeks it will take you to sell through your current level of stock. Cloud Reports enables seasonal reporting, meaning more accurate, more useful data to back up your buying decisions.

Cloud Reports does the maths for you, giving you essential data to inform your buying and planning. Spend less time number crunching, leaving more time for the important stuff.

How do I calculate Weeks Cover?

Let's say that you have a stock turn* of 2.6.

* Stock turn is basically how many times you would sell through your stock in one year. An average stock turn of 2.6 in a specialist retail environment is typically representative of a good balance between meeting demand, achieving meaningful growth and still having something akin to a successful work-life integration.

The maths behind

There are 52 weeks in a year... so 52/2.6 = 20 weeks.

In other words, on average, it should take 20 weeks to sell through your entire stock position (all knowable factors considered).

Understanding the Numbers

In knowing your Average Weeks Cover value, you can now look at brands, departments, categories or individual items and assess how products are selling. Identify slow moving stock and stock that is flying out the door.

You should be mindful that, despite the maths, it's not a pure science. There's the art that you bring to it through your experience and skills as a retailer.

Related to this article ...

Cate T, Nov 2018. Cloud is best

Grant H, Sept 2018. What is your Weeks Cover?

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