Assessing SKU Performance

Assessing SKU Performance

SKU performance measures the effectiveness of individual SKUs in terms of sales, profitability, and inventory turnover. It helps businesses identify high-performing products and optimize their inventory.

Measuring SKU Performance

SKU performance can be measured using metrics such as sales volume, gross margin, inventory turnover, and contribution to overall revenue. Analyzing these metrics helps businesses identify which products are driving sales and profitability.

Strategies to Improve SKU Performance

1. Sales Data Analysis: Regularly analyze sales data to identify high-performing SKUs and focus on promoting these products.
2. Inventory Optimization: Adjust inventory levels based on SKU performance to ensure high-demand products are always in stock.
3. Product Promotions: Use targeted promotions to boost sales of underperforming SKUs.
4. Continuous Improvement: Continuously review and improve product offerings based on SKU performance data.

Success Story: Home Goods Store

A home goods store analyzes its SKU performance and identifies top-selling items. They focus on promoting these products through targeted marketing campaigns and optimizing inventory levels to ensure availability. They also use sales data to identify underperforming SKUs and implement targeted promotions to boost sales. These efforts lead to improved overall SKU performance and increased profitability.