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Rate of sale really does matter – and POS can help

We often report on the thoughts of retail guru John Stanley and this month he has reminded retailers of a very important basic rule in successful retailing: “It is not the profit you make on an item that is important for the success of your business; it is stock turnover in relationship to gross profit.” Effective point of sale display will help improve stock turnaround – and profits.

Writing recently in Better Retailing, John put together three simple but golden rules for a retailer:


  • Rule 1: All products in a convenience store will sell at different rates, but each item should sell at least every three months.
  • Rule 2: Constantly assess the number of items you are purchasing in relation to how quickly they will sell.
  • Rule 3: The winning retailer monitors stock; if a product is not selling they will make a decision to sell it. What they do depends on the product.


The conclusion is relatively simple: stock what sells, not what vanity dictates, and think effectively to deal with slower selling lines.

One way to achieve both speedy stock turnover and to manage less popular lines is with effective POS display. Clear communications, successfully guiding customers around a store and maximising areas such as the counter will all lead to faster sales, and the same techniques can be used to increase the sales rates of less popular items.

Retail display items are not costly, and they are designed for re-use in even the busiest of retail environments. In fact, they are an investment in the business as effective retail displays will increase not just sales levels but the rate of sales; the last thing any retailer wants is to reduce the sales price of any item as that reduces margins and will have a damaging effect on profits. Far better, to ensure they have a wide range of good quality retail display items to clearly demonstrate their product ranges to the consumer. This process might begin outside the ship with an eye-catching Aboard, and will extend from window display into the store itself. Sign and poster holders, shelf talkers and barkers, retail display items ad counter top units will help with sales, and, if the customer has enjoyed a good experience instore then there is every chance they will repeat the exercise in the near future.


Remember to watch this space as we will be releasing a range of great blogs over the coming months. Our readers can also find our Wrights Plastics GPX Facebook page at For all the latest goings on, you can keep up-to-date with Wrights Plastics GPX on Twitter And we also now have an Wrights Plastics GPX Google+ page live at