For instance, understanding that a low margin SKU has sat on the floor for a longer period than normal can allow a retailer to adjust the price in order to move that SKU off the floor and make way for a higher margin product that consumers are more likely to buy. Without tracking which SKUs are moving this can’t be done.
This level of customization can help differentiate smaller retail stores from traditional full-size stores in major cities, which strive to meet and appeal to their broadest target demographic, attracting and retaining customers by filling areas of opportunity for the community that are currently vacant.
RL: How does SKU tracking make inventory management easier in the long run to drive brick-and-mortar business expansion?
Voyer: Not having an inventory management system would make it nearly impossible for any retailer to survive. One of the things that separates the good from the great is the frequency and depth of analysis of the data. Best-in-class stores will frequently dive deep into their inventory to find which products (SKUs) are moving and which are not. The best information comes when you have a view into your competitors’ top selling SKUs. Competitive SKU tracking tools can provide SKU level data for your products, allowing any brand or retailer to understand what the fastest moving models at the top retailers are – even if they are not the products you sell.
Naturally, once you get this information, this can help you decide which products to put on the shelves and sales floor. Combined with environmental and behavioral information, these systems lead to an understanding of consumer preferences. For example, which parts of the country sell more battery-powered lawnmowers and how is that changing? Putting these products in the right places helps you get ahead of trends, driving sales with the target customer who wants your products.