In today’s retail landscape, we need to be diligent in managing our inventory across all channels. To do so, we have to clear ageing inventory.
In this article, we will guide you on how to optimise inventory using the Ageing Analysis module to stay competitive in the market.
Step 1: Identify key focus area for promotions and clearances
First, we have to differentiate what ageing means between core and fashion products. For fashion products, or also known as seasonal products, we can categorise them as ageing in two months. On the other hand, core products age well. Brands can produce core products repeatedly throughout the year.
Now, we move on to the first step, which is to look at ageing category with low sell out rates. As an example here, we see Boohoo in the UK market using the Ageing Analysis module.
Then, we look at ‘Ageing by Category’. Scroll down to identify products with longer-than-usual shelf lives.
From here, we can see several categories with low ‘Total Sellout’ rate, where you can compare it with the total sellout rate on Ageing by Retailer. Categories with low sellout rate are tops, dresses, swimwear & beachwear, shoes, and shorts. Click on ‘Show more’ to view more categories.
Step 2: Analyse core products
The second step is to analyse categories with low sellout rate. We chose tops, dresses, swimwear & beachwear, and shorts as examples.
From there, we divide it into core and fashion products, then make stories from fashion products. As an example, here, we have plenty of summer seasonal products, in which the story can be around the last leg of summer sales.
Step 3: Design campaign
Identifying slow-movers is just as important as determining bestsellers. By looking into categories that aren’t performing well, you know what to avoid in your future collections.
We hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.