ANLA Knowledge Center

Episode 1

The Power of New
A retailers financial health is in direct proportion to the percentage of his inventory that is New. Paul will discuss Pareto’s Principle and how a retailer can accumulate old inventory without even realizing it, and that any inventory has hidden costs when it sits. A follow-up question discusses the distinction between “Fresh” and “New”.

Episode 2 NOW PLAYING

The Paradox of Inventory
We all know that too much inventory is a problem. Paul will discuss why having too little inventory is actually worse than having too much, and how today’s customer reacts when stock turnover rate isn’t quite right. Understand the challenge of the largest asset on your balance sheet, and the role of the buyer in managing this paradox.

Episode 3

Inventory Turnover
Turnover is the hidden factor in your P&L statement - the time measurement of how quickly you sell your inventory. Paul discusses the importance of improving turnover to increase cash flow and net profits. He proposes an alternative concept to turnover (week's and month’s supply) and short vs. long term sell-through goals. The follow up question discusses the danger of turning over inventory too quickly.

Episode 4

Initial Markup
It’s important to understand the most fundamental concept in retailing. Paul will discuss how even a minor change in initial markup, when paired with a comprehension of psychological pricing, can dramatically affect bottom line profits. A follow up question covers identifying items that can take a higher initial markup.

Episode 5

Markdowns
While markups (Episode 4) are the most fundamental concept in retailing, Markdowns may be one of the most misunderstood and misapplied. Part 1 covers Paul’s Seven Rules of Markdowns - watch and create a more successful and profitable strategy for moving product through your store. Part 2 explores the ‘Danger Point’ of markdowns. Are you using Rx for Profit for team training? A group discussion question and homework assignment are included at the end of Part 1.

Episode 6

Merchandising by Classifications
The importance of structuring our merchandise into a hierarchy of departments and classifications. End use examples. Looking at merchandise through the customers eyes. How events shape shopping patterns.

Episode 7

Cash Flow
It’s that time again! The spring 2011 buying shows are upon us…will you and your buyers fall prey to “cheaper by the dozen” and wind up with more inventory than you need? When confronted with great deals, savvy salespeople, and tantalizing new merchandise, your business’ cashflow must remain your number one priority. Tune in to learn some quick rules of thumb for buying and optimizing cashflow for a healthy spring season ahead!

Episode 8

Paper Profits vs Cash
In this day and age of tighter credit lines, understanding the difference between cash on hand and paper profits is key to success - especially in a seasonal business. Join Paul as he articulates some of the basic principles (and dangers) of profits on paper: while they may look good, you can’t eat them or pay the bills with them.

COMING SOON...

Episode 9 COMING SOON

GMROI
The most important measurement of inventory productivity in retail. The return we are making on our inventory investment. GMROI says a retailer can make money in different ways. Fast selling and low margin or slow selling but higher margin. Examples will be shown.

Episode 10 COMING SOON

Sell and Buy
All retailers want to go to RETAIL HEAVEN! Retail heaven is where the retailer sells the merchandise first and then pays for it. An examination of stock turns with manufacturer dating programs. Steps you need to take to get to after life bliss!

Episode 11 COMING SOON

Merchandise Planning & Open To Buy
The importance of adhering to a sound merchandise budget when buying. Keeping inventory levels in line with realistic sales projections. But how much is that? The “pen store” illustration. Why we overbuy.

Episode 12 COMING SOON

Five Mistakes To Avoid at a Trade Show
Trade shows can be the most stressful event of the year for retailers. Here are five mistakes many retailers make when attending and how to avoid them. They include overbuying, deciding too quickly, using the vendors’ purchase orders, delivery windows and negotiation.