Retail operational excellence is the combination of four drivers: business growth, margin improvement, product performance and working capital and cost control.

In retail, where inventory typically accounts for 10 percent of sales, optimising working capital is an important component of performance improvement.  The six key indicators of inventory performance improvement are stock turns, sell through rates, shrink rates, inventory as percent of sales, percent end-of-season stock and percent returns.

For the full article, please download the PDF.