KEVIN: Ideally you want to have around 1.7 SKU’s per sq ft in your shop so if your retail space is 1000 sq ft you will want 1700 SKUs. In terms of an initial order you never really want to order just 1 of an item so if the retail price is $20-40 you will want at least 4-5 but what is most important is to do ongoing item eval for all new items (2-3mos) so you can reset your min/max based on actual sales

 

KEVIN:  Bottom line is you do not want your shop to feel cluttered that is why you want to optimize your SKU’s and only have ones in your shop that make you money!

 

(3) The sku per square foot ratio is hard for me to visualize. But this all reinforces your bottom line from last time: ditch the stuff that’s not selling and stop holding out

 

KEVIN:  You should not have to visualize it  Your POS system should do it for you. Take your retail sq ft X 1.7 and that is how many SKU’s you should have. Compare that to your active item list and see what the difference is. If you do Item eval my guess is you can get that # down in a strategic plan that will not hurt you too much financially and give you space to bring in some best sellers that will make you $$$$