GMROI: The sacrificial lamb of retail

As a consultant and ex-merchandise planning manager, I’ve spent quite a lot of time studying retail KPI’s and it is without doubt in my view that GMROI (Gross Margin Return on Inventory Investment) is the most powerful KPI to help point the retailer in the right direction. It’s a powerful KPI because it takes into consideration so many other “mini-KPIs” and rolls them into one. Sales, First Margin  per cent, Markdowns, Stock Turn and Inventory management. The f

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