Retail
Retail Profitability
In retail the products to drop are often the best-sellers whose cost-to-serve beats their margin. How TDABC finds true profit per SKU.
Retail Profitability
In retail, the products to drop are rarely the slow sellers; they are the popular ones whose true cost-to-serve quietly exceeds their margin. Once shelf space, handling, markdowns, returns and replenishment are costed by TDABC, some best-selling lines turn out to destroy value while quiet niche items carry it. The decision is not the gross margin on the tag but the true profit per SKU and per shelf-metre. Our retail profitability analysis shows how to rank a range honestly before cutting it.
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Frequently asked questions
Retail profitability – which products to drop?
In retail, the products to drop are rarely the slow sellers; they are the popular ones whose true cost-to-serve quietly exceeds their margin. Once shelf space, handling, markdowns, returns and replenishment are costed by TDABC, some best-selling lines turn out to destroy value while quiet niche items carry it. The decision is not the gross margin on the tag but the true profit per SKU and per shelf-metre. Our retail profitability analysis shows how to rank a range honestly before cutting it.