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Whether you’re managing apparel, sporting goods, electronics, or home décor, understanding how to plan for seasonal shifts and product longevity can significantly impact the bottom line.
Regardless of industry, every retailer deals with inventory that moves at different speeds.
Some products have a long shelf life, meaning they remain relevant and sellable over extended periods, while others have a short shelf life, requiring quick turnover to maintain relevance and avoid markdowns.
For example:
Understanding these dynamics allows businesses to optimize inventory investments, manage Open-to-Buy (OTB) effectively, and minimize excess stock or missed sales opportunities. In addition, aligning these strategies with consumer behavior and current market trends is essential to staying competitive.
Many businesses already engage in some form of seasonal merchandise planning, whether formalized or informal. However, refining this approach can provide a more precise roadmap for managing inventory flow.
1. Layering Seasonality into Planning
A simple yet effective way to introduce shelf life management is by incorporating different layers of seasonality:
2. Managing Shorter Life Span Products
Short-term shelf life products require a proactive approach to ensure timely turnover. This includes:
For industries like sporting goods and outdoor retail, seasonality is deeply ingrained. Products tied to specific sports or activities have straightforward entry and exit dates, making formalizing planning around these shifts crucial.
Adopting agile inventory practices, such as real-time sales monitoring, can help retailers pivot when trends shift. Integrating omni-channel data (e.g., online, in-store, mobile) further enhances forecasting accuracy and responsiveness.
3. The Importance of Entry and Exit Dates
One of the biggest challenges in merchandise planning is ensuring that seasonal transitions happen smoothly. A common mistake is focusing too much on total OTB allocation without considering how individual product classes transition throughout the year.
Key considerations include:
Developing a robust calendar that includes key entry and exit dates can synchronize efforts across the supply chain. Retailers might also consider vendor partnerships that offer flexible delivery schedules, which can help them adapt to rapid market changes.
Explore Partner: ANT USA
Retailers with a structured approach to balancing long-term and short-term shelf life products will be ready to handle changing consumer demands, reduce excess inventory, and maximize profitability.
Key takeaways include:
While this framework provides a robust starting point, each business may require customized templates, dashboards, and strategies to fit its unique product mix.
The key to success lies in continuous refinement—regularly reviewing performance metrics, staying updated with market trends, and being agile enough to adjust plans as needed.
By focusing on entries, exits, and seasonality, retailers can create a merchandise plan that works in theory and real-world execution, ultimately leading to improved profitability and a stronger market position.
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