Evaluation and Rotation
A primary motive for stock rotation is that a company positions older items
so they sell more quickly than newer inventory.
so they sell more quickly than newer inventory.
The focus of every evaluation and rotation should be on making store space and product mix work as hard as possible to maximize returns from every square foot and every promotion.
What this means as items that have been sitting for too long are taking the place of items that may sell through faster. This is where our rag out procedure comes into play. The general rule of thumb is to rag out the color that was just on sale for 75% off. We may also rag out on an as needed basis when it comes to furniture that may be damaged or have more ware than items that may have just come in on the trucks.
An item in our inventory that does not hit a price reduction on a frequent basis would be our Red Tag or exclusive items. The hope is that our evaluation and pricing model will be sufficient enough to move these items but unfortunately sometimes we miss. Evaluation and rotation for these items is different in the sense that we have the option of placing the item in our colored tag rotation or we may reduce the price of the item and keep it as an exclusive. A manager or the production lead should be consulted when ultimately making this decision.