1. 01
WINTER
Retail
Template
Rules & Formula
(Fashion)

2. 02
100
90
80
70
60
50
1st Qtr
40
2nd
3rd
30
4th
20
10
0
A
B
C
D
It’s all about analytical

3. Inventory
• COGS = Beginning Inventory + Purchases Ending Inventory
• (Stock Turn) :Turnover = Net Sales ÷ Average
Retail Stock
• Quick Ratio = Current Assets - Inventory ÷
Current Liabilities
• Average Inventory (Month) = (Beginning of
Month Inventory + End of Month Inventory) ÷ 2

4. 03
Pricing & Margin
Markdown

5. Pricing & Margin
• Cost of Goods + Markup = Retail Price
Retail Price - Cost of Goods = Markup
Retail Price - Markup = Cost of Goods
• Contribution Margin = Total Sales - Variable
Costs
• Gross Margin = Total Sales - Cost of Goods
• GMROI (Gross Margin return on Investment) =
Gross Margin ÷ Average Inventory Cost
• Initial Markup % = (Expenses + Reductions +
Profit) ÷ (Net Sales + Reductions)

6. Pricing & Margin
• MM (Maintain Mark up) = (Original Retail
- Reductions) - Cost of Goods Sold
MM % = Maintained Markup ÷ Net Sales
Amount
• Margin % = (Retail Price - Cost) ÷ Retail
Price
• Markup = Retail Price – Cost
• Markup % = Markup Amount ÷ Retail
Price

7. Pricing & Margin
• Reductions = Markdowns + Employee
Discounts + Customer Discounts + Stock
Shortages
• OTB (retail) = Planned Sales + Planned
Markdowns + Planned End of Month
Inventory - Planned Beginning of Month
Inventory

8. 04

9. Sales
• Sales per Square Foot = Total Net Sales ÷
Square Feet of Selling Space
• Sell-Through % = Units Sold ÷ Units
Received
• Gross Sales ÷ Number of Transactions =
Sales per Transaction
• Net Sales ÷ Number of Employees =
Sales per Employee

10. Retail planogram
05
Product placement and improved sales are just two very
basic reasons a retailer should be implementing
planograms in their shops. Planograms provide many other
positive benefits, such as:
•
•
•
•
•
•
Assigned selling potential to every square foot of space
Satisfying customers with a better visual appeal
Tighter inventory control and reduction of out-of-stocks
Easier product replenishment for staff
Better related product positioning
Effective communication tool for staff-produced displays

11. Elements of Effective Visual Merchandising
• Balance: Asymmetrical rather than symmetrical balance
with the display.
• Size of Objects: Place the largest object into display
first.
• Color: Helps set mood and feelings.
• Focal Point: Where product and props/signage and
background come together.
• Lighting: Should accent focal point, if possible.
• Simplicity: Less is more so know when to stop and
don't add too many items.

12. THANK YOU