To be successful in the competitive retail arena, retailers must convince the shoppers, that they can satisfy their needs better than their competitors. In today's arduous economy, retailers are trying hard to increase the efficiency of their supply chain in order to decrease their risk and increase their profit margins. 'Right sizing' is now emerging to be a novel idea which enables optimum utilization of the available shop space, and discard the slow moving products.
This process involves trimming the size of the store and purging off the slow moving products, which are in turn replaced by specialty formats or shop-in-shop model. This reduces the space occupied by the slow moving products. Shop-in-shop is the best way of leveraging field knowledge of specialty retailers and increasing their profits during the period of recession.
Adopting this system enables the management to take proactive decisions about the life cycle and supply chain activities of the product. When a retailer recognizes his position in the evolutionary life cycle, and utilizes them to guide his investments in business intelligence systems, he will be able to make sound decisions at the right time
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Fibre2fashion News Desk - India
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