Sales are the main pillar of the retail business. Without sales, it is almost impossible for a business to sustain itself. All retailers are looking for ways to improve their sales performance, both new and experienced. One way to maximise sales is by performing regular trade monitoring and reporting.
Trade monitoring and reporting refer to the assessment of a brand or retailer’s strategies that have been deployed and studying the results. This includes analysing sales performance and inventory management. It is similar to conducting a post-mortem meeting – to identify lessons learnt and where to improve next.
It is important to do proper trade monitoring and reporting consistently. Here are some data points that you need to cover in trade monitoring and reporting:
- Identify own brand potential and risky categories
- Review aged inventory performance
- Review unfavourable price point performance
- Review categories performance (i.e. sell-out, ROS, sales and stock mix, weeks cover)
- Activation of tactical promotion (for underperforming categories)
- Increase inventory level (replenishment or new launches for performing category)
By reviewing and monitoring the above points, you can hone the existing sales process and improve sales performance by optimising the assortment with as little guesswork as you can muster.
One of the formats to utilise is WSSI (Weekly Sales, Stock and Intake), a merchandising tool that uses historical data to plan and monitor sales, stock and intake. The tool is especially helpful for inventory management, effectively maximising sales and keeping costs to a minimum. It is best done on a weekly basis, but some corporations do so on a monthly basis. The key is to track sales, stock and intake continuously so you can align and recalibrate if needed.
By performing trade monitoring and reporting, brands and retailers can develop a sustainable strategy in achieving KPIs. Done right, trade monitoring and reporting provide a clear view of the entire retail process and current position of the brand while surfacing the insights needed to strategically plan the next steps.
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.