Strategies To Keep Your Shelves Stocked For Peak Season

Peak season makes up a major part of a retailer’s annual income. This requires a well-considered strategy to ensure that your business is well-stocked for peak season and can support flowing sales during busy periods. Here are some strategies to ensure your stock promotes big business:

Accurate Data
Managing inventory can lead to discrepancies due to shrinkage, shipment variances, returns, or lost items. What is on paper often doesn’t match what is in store, leading to mistakes in placing orders and mismanagement. By staying organized and using smart, integrated systems, you can trust your inventory lists and plan accordingly.

Re-order Stock in the Correct Timeframes
Understanding what and when to order is part of running a successful business. When products are flying off the shelves, you need to forecast based on historical sales, stock turn, and sell-through rates. Cross-reference this with promotional plans, economic conditions, and seasonality to anticipate customer behavior. Current market trends and shifts in consumer buying habits are also important factors to consider when reordering stock.

Good Communication with Suppliers
Supplier relationships are crucial for business success. Clear communication with suppliers can mean the difference between timely orders and delays. Prioritize paying on time, negotiate terms upfront, and foster relationships. This ensures that suppliers prioritize your orders and anticipate your needs.

Categorize All Seasonal Products
Seasonality varies by business and can be influenced by product lifecycle or holidays. Some products may have year-round sales but see peak demand during certain seasons, like suntan lotion in summer or coats in winter. When ordering stock, consider the length of the season and ensure delivery times align with the needs of your business.

Don’t Forget Working Capital
Working capital is essential for business operations. Without cash on hand, you may miss out on discount opportunities and be unable to compete effectively. Inventory and cash flow are closely linked. To free up cash flow, consider liquidating surplus stock through sales or bundling products. You can also contact customers with unpaid accounts to ensure timely payments, injecting cash back into your business for reinvestment.

Business Funding Solutions
Opportunities can arise suddenly, requiring immediate cash to stock your shelves. A Merchant Cash Advance is an excellent option for retailers, providing access to large amounts of unsecured cash in under 48 hours. This type of funding allows repayments to align with turnover, ensuring that seasonality and last-minute opportunities do not hinder your business.

The Bottom Line
Understanding stock management is vital for a well-run business. It involves careful management, strong relationships, effective communication, and reliable resources, such as funding partners, to drive your business forward when needed. To learn how Merchant Capital can support your retail business through the peak season, contact us today.