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Retail Math Made Simple

Introduction :

For many people the phrase ‘retail math’ conjures up horrifying memories from their school days. Even
so, they realise that retail math is a very important part of operating a retail business.
In every business there is never ending number crunching going on. The analysts have to look at
the numbers from every angle to ensure on-going profitability.
A retail store, or group of stores, is no different. There are many numbers that need to be analysed
regularly to help in managing the day to day business; to aid in decision making on just about
everything.

Objectives :

The course objective is to develop your understanding of:

The fundamentals of business math and statistics


How to calculate trends, percent change and margins
How to estimate weeks of supply
Understand fully the terminology associated with retail math
Identification of KPI’s and their importance
Sell through rates and weeks cover

Contents :

Introduction

Glossary of terms used in Retail Math Made Simple.


Key Performance Indicators.
Commonly Used Formulas.
Profitability Measurements
Commonly Used Formulas
Balanced scorecard

Setting Budgets

% Mixes
Variances
Margin
Typical Profit/Loss Statement (Operating Statement)
Open to Buy (Definitions, Formulas)

Range Planning
Supplier Costing
Size Ratios
Grading & Density

Reviewing Performance

Sell through
Rate of Sale
Best Sellers
Weeks Cover

Trading

WSSI (weekly sales, stock & intake)


Markdown
Allocations & Replenishment

Who Should attend?

Head Office personnel work with retail math regularly. Most of their decisions are based on
financial considerations of one type or another. Store Managers, Supervisors and any new personnel
who want an insight to understand the various numbers concerning the business.
Course Venue Date

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