Under performing stock kills retail businesses including newsagencies. Items on the shelfs, the shop floor and in the back room which do not sell in the time necessary to generate a profit for the space they take, the labour involved and the cost of the stock are harming the business – unless they generate traffic which results in sales of other items.
While newsagents often complain bout parts of the business over which they have less control and for which they make slim margin – newspapers and magazines – it is in the areas where they have the most control that I see the worst performing stock.
I often find stationery, gift, confectionery and tobacco departments grossly under performing … holding businesses back. yet newsagents have complete control over these.
Here’s my tip – use your computer system to actually manage your inventory for profit.
To discover $15,000 in under performing stock in a business which is struggling is frustrating. With the tools available to newsagents today this should not happen. It’s poor business management.
What is even more frustrating than what I have written above is that some newsagents will read it and not do anything.