4 Merchandise Strategy Actions When Starting a Dollar Store

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Cost reduction is a challenge faced by every person starting a dollar store. In fact it starts even before the store opens for business the first time. It starts as you work to shave cost from the store fixtures, equipment and merchandise you purchase to set-up your new store. But that is just the beginning. Every day is a challenge as you look for waste and cost reduction opportunities. One of the biggest and highest leverage cost reduction opportunities is associated with the products you carry in your store. In this article I present 4 merchandise strategy actions when starting a dollar store.

1) You must know what sells quickly, what sells slowly and what doesn’t sell at all. The time of allowing slow selling or non-selling products to sit on the display shelves of your store are long gone. In today’s marketplace there simply isn’t enough time, money or room to allow this type of merchandise strategy to exist when you start a dollar store.

2) Eliminate non-selling items as quickly as possible. There is no value to shelves and shelves of merchandise that simply will not sell. While it may be painful to watch as the price goes ever-downward, the losses associated with leaving the merchandise to sit are even higher. Not only are you losing money, but over time there is a negative environment created by leaving the dusty, unwanted merchandise sitting. Take your losses and move on.

3) Once the non-selling items have been trimmed from your inventory, start working on the slow sellers next. While the non-selling items are a priority, do not think the job is done. Once non-sellers are eliminate from your store’s inventory focus on selling the slower-selling items. A creative strategy may be all that is required. Start with prominent displays and great signage. If that doesn’t do the trick try small price drops. Consider featuring the slow-sellers as a part of a sidewalk sale, or inventory reduction sale. Try trading some of your slow selling products for slow sellers from a competitor.

4) When opening a dollar store be cautious about experimenting with new items. Clearly define your merchandise strategy for all new product additions. Complete your research. Start with small test orders. Watch the sales levels of new products to make sure they are worthy of being carried as regular inventory in your store.

To your success when starting a dollar store!

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Source by Bob Hamilton