For many businesses across South Africa, financial year end is looming near, and it’s no different for retailers. Such periods provide retail businesses with a valuable opportunity to assess performance, optimise operations, and strategically plan for the year ahead.

With over 40 years of delivering innovative and market-leading software for retailers across South Africa, at Kerridge commercial system, we’ve identified five key areas that can enhance profitability and set the stage for sustained future success.

Five key areas that can increase your retail business’ profitability include:

1. Retail inventory management optimisation

Effective inventory management is crucial for retailers. By optimising what you have (and where), you can streamline operations and improve cash flow. To achieve this, we’ve found it profitable to consider the following steps:

• Comprehensive industry audits: Conduct a thorough count to identify discrepancies between physical stock and records.
• Identify slow-moving stock: Recognise products that are not selling as expected and develop strategies to clear them, such as promotions or bundling.
• Leverage technology: Utilise modern inventory management tools to track stock levels in real time and forecast demand accurately

2. Strategic financial planning for retail

Thoughtful financial planning sets your retail business up for sustainable growth. Therefore, by aligning your financial year end with your business cycle, you can harness significant benefits for your organisation.

• Optimal year end selection: Choosing a year end date that aligns with your peak profit periods can provide a clearer picture of financial health and improve cashflow management.
• Cashflow management: Planning for major expenses and understanding the timing of income can help maintaining liquidity during slower periods.

3. Retail supplier relationship evaluations

Strong supplier partnerships are vital for retail success. Regular evaluations and open communication with suppliers can lead to improved terms and more resilient supply chains for retail businesses in all sectors.

• Performance assessment: Review supplier reliability, product quality and delivery timelines to ensure they meet your standards.
• Negotiation opportunities: Explore possibilities for better terms or pricing based on your sales data and forecasts.
• Diversification: Consider broadening your supplier base to mitigate risks associated with supply chain disruptions.

4. Enhance your retail customer’s experience

Understanding and improving your customer’s journey can drive loyalty and sales for most retailers. Enhancing the customer experience can lead to increased satisfaction and repeat business.

• Feedback collection: Gather customer insights through survey or reviews to identify areas for improvement.
• Personalisation: Utilise customer data to tailor marketing efforts and product recommendations.
• Omnichannel integration: Ensure a seamless shopping experience across all platforms whether in store or online.

5. Performance analysis and goal setting for retailers

Reflecting on past performance and setting clear objectives is essential. A strategic approach ensures continuous improvement and aligns your team with your retail business’ objectives.

• Sales data review: Analyse which products or categories performed well and which did not.
• Expense evaluation: Identify areas where costs can be reduced without compromising quality.
• Goal setting: Establish SMART goals for the upcoming year.

By focusing on these key areas during your financial year end, retailers can enhance operational efficiency, strengthen financial health and position themselves for a prosperous year end. These key objectives no longer need manual intervention or multiple systems to support multiple functions. A good retail management software solution can do this for you. Additionally, the right retail software solution will provide a holistic view across the business and will ensure an integrated and informed approach to running your retail operations.

Get in touch with us and say goodbye to manual intervention and multiple systems, and hello to a holistic, integrated approach to running your retail operations