How to Improve Store Operations Without Major Additional Costs

Start by reviewing sales and stock: find items with consistently low sales, check whether they need replenishment, and confirm that products are available on the shelves. To test a display change, choose one change and compare the number of units sold before and after it.

This comparison provides material for observation. It does not prove that the display change itself caused the result, and it does not justify promising an increase in profit.

Find items with consistently low sales

Review sales records for several accounting periods. Identify items with low sales throughout those periods. A single period is not enough to conclude that an item is consistently slow-moving.

For the selected items, consider sales alongside stock levels. Excess stock means funds tied up in unsold goods. Track it separately from available cash.

Determine when to replenish stock

For each item you plan to replenish, consider three values:

• the average number of units sold per day;
• the delivery lead time;
• safety stock in case of delivery delays or demand fluctuations.

Replenishment guide = average daily sales × delivery lead time in days + safety stock.

Calculate this guide using data for the specific product. The calculation basis provided here does not establish a universal value for the entire assortment.

Check product availability on shelves

Inspect the display. Return products that have been moved from their designated places. Check for empty shelf sections and replenish them if the relevant product is in stock.

You can do this check before testing a new product placement.

Test one display change

Formulate a specific hypothesis. For example: will the number of units sold of a selected product differ after its placement is changed?

To test an individual hypothesis, change one element at a time. Do not combine a new placement, a price change and other planned changes in one test.

Before starting, define the observation period. Record the number of units sold during the baseline period. Then collect the same measure for a period with the new display.

Compare the results and record any other changes in operating conditions. A simple comparison of consecutive periods does not separate the effect of the display from other factors. Do not treat a difference in sales as a proven effect of one decision.

Review profit and available cash separately

Accounting profit and cash balance are different measures. Because of the timing of receipts and payments, a profitable business can experience a cash shortfall.

When reviewing stock, separately assess how much money is tied up in unsold goods and how much cash is available. The profit figure alone does not answer either question.

Ordering needs by warehouse in Torgsoft

If the additional paid feature minimum stock levels for each warehouse is already enabled in your store, Torgsoft can generate ordering needs for an individual location based on its minimum and current stock levels.

When creating a supplier order, the “Need to order” column is calculated as the difference between the location’s set minimum and its current stock. Minimum stock levels must be configured for this. The calculated need does not mean that the product is ordered automatically.