Successful Inventory ManagementBest practice in inventory management is key to success. Video sell-through requires a sophisticated strategy to maximize sales and profitability. With video sales soaring to an estimated $ 3 billion in 2005 alone, and projected to sky-rocket dramatically throughout the 2006, retailers are just now starting to cash in on the high-profile sell-through entertainment opportunity.
Although the profit potential is enormous, implementing a thriving sell-through section on a consistent store-by-store basis can be difficult. For video sections to generate outstanding in-store consumer excitement and sales volume, retailers entering the permanent sell-through arena must consider a number of crucial variables to ensure optimum success. More so than for many categories featured in the supermarket setting, video sell-through requires a sophisticated inventory management system to track sales store by store, provide the title selection necessary to stimulate ongoing interest, and perhaps most important, minimize the amount of in-store labor required to manage the department. Some retailers are attempting to implement video sell-through sections using a distributor who can supply certain titles or in-and-out shippers, or both, but lack the store service and computerization required to provide a total management program on an ongoing basis. Many retailers, however, are quickly discovering that the key to in-store video success is working with a full-service company experienced in the demands of operating a superior supermarket sell-through video department. Before jumping into the video sell-through arena, retailers should ask a number of key questions about services the supplier can provide. * Is the program designed to offer a store-by-store approach to maximize sales? * Does the supplier have a sophisticated computerized system to track sales? * Who will be servicing the program? Are the company representatives experienced in the supermarket industry? * How much time and labor must be devoted to managing the program? * Does the program provide the appropriate title selection and variety crucial for a thriving section? * Does the supplier provide custom-designed fixtures to meet the decor and space requirements of the stores? * Is there a 100% guarantee? * Are detailed written reports tracking sales on a store-bystore and price-point basis provided? * Are all studios represented in the program? Does the supplier provide every category of video? * Does the supplier provide an extensive program of in-and-out promotional shippers and hot titles? Before jumping into the competitive sell-through arena and selecting which program best meets the needs of an individual chain, a number of critical elements must be considered. Without a sophisticated computerized system to track sales and inventory turns and measure consumer preferences on a store by store basis, a video sell-through program is unlikely to reach its full profit potential. Because customer profiles and preferences vary from store to store, and because of the thousands of titles now available, a high-tech inventory management system for tracking video sales at store level by title, category, and price point is crucial for managing the section on an individual store basis. |