Retail inventory
-Retailer inventory risk is wide but not deep.
-The emphasis is more on inventory velocity.
-Inventory velocity is measured by inventory turnover.
-The risk is undertaken on variety of products but for a given product the risk is not deep relatively. The exception is specialty retailer where the depth and duration will be longer as they handle narrower lines.
-For instance, retailers’ risk is spread across more than 10,000 SKUs, a general merchandise and food store may carry around 25,000 SKUs and a full line department store may have as many as 50,000 SKUs.
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