"No - I’m not interested in more sales and higher merchandise margins”
For the record, we haven’t heard any Retail CFO say this in 2024.
We’ve been discussing trends that are shifting size curve demand.
But how does this impact financial performance? And why should retail CFOs care?
Incorrect size curves impact financial performance through:
🗺 💵 Lost Sales: Inaccurate size curves result in incorrect stock levels at the size location level. When products aren't available in the right sizes, sales are lost because customers can't find what they need. The revenue loss can be substantial if this occurs frequently across multiple stores and styles.
❌ 🔻 Markdowns: Incorrect size curves create excess inventory in the lower demand sizes. This forces companies to clear inventory by marking down prices to attract consumers. Large-scale markdowns significantly reduce gross margins and greatly impact profitability.
At Sizeo, we are dedicated to helping retailers minimize lost sales and markdowns due to sizing problems. These concepts are the basis for our ROI calculations – which typically show Sizeo as the kind of high ROI, low lift solution that everyone could use a little more of in 2024 - and oh by the way Retail CFO's ❤️ .
Contact Us today or connect with our CEO Gray King on LinkedIn to learn more.
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