Retail Profit Management

In the midst of fierce competition and flat markets, retailers realise the same old methods may not be the way to succeed. In the past, demand was greater than supply. There were product shortages, fewer stores and fewer options. Today, however, most markets tend to be saturated, leaving no room for weak retailers. Productivity is essential to lower costs and manage inventory more profitable and in balance.

What does it take to improve productivity?

Retail Profit Management is used by larger stores. In essence, it is the means by which a store can measure profitability and enhance the use of each square foot/metre of floor space, while taking into account all the attendant overheads.

Pacsoft makes this facility available to all stores irrespective of size. Store owners are usually too busy running day-today affairs of their store to analyse the profitability of each square unit of floor space.

R.P.M. Retail Profit Management - uses the data available within Pacsoft to generate information that without any additional effort, will assist store owners to more effectively use their store area.

Given that store owners know the overheads of the store these costs can be amortised over the store. By then determining the area used by the paint department, the net profit for that area can be calculated. Relative to other departments the contribution of paint to the bottom line can be determined. Should paint be reduced or increased? What will be the effect on the departments?

What is your return on investment per square metre/foot?