Problem: Retailers have a long tail of ‘unprofitable’ stores because 30%-48% of their shelf space is clogged with ageing inventory, driven by a bias towards cost efficiency (bulk buying and long lead times) that prioritises low unit costs over the speed of sales. Solution: Shift from cost-based to throughput-based operations by institutionalising ‘disciplined churn’, which includes automated exit rules for slow-movers, performance-led space allocation, and a supply chain optimised for rapid replenishment rather than volume. Benefits: By protecting shelf freshness, retailers transform the ‘ticking clock’ of inventory into a driver of higher sales velocity, leading to superior GMROI (Gross Margin Return on Investment) and faster inventory turns across all store formats.

Key Takeaways

Many retailers carry a 30% tail of unprofitable stores because ageing inventory clogs shelves. This white paper shows how to fix it by replacing stagnant stock with 'disciplined churn', boosting throughput and store GMROI.

The ticking shelf. The overlooked economics of store performance

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Discover why 30% of retail stores remain unprofitable. Learn how to eliminate ageing inventory and boost GMROI by shifting from cost-based sourcing to a high-velocity ‘disciplined churn’ model.