What is a typical normal range for turn rates in merchandising?

The typical normal range for turn rates in merchandising is often considered to be between 1.5 and 2.5. This range indicates how many times inventory is sold and replaced within a specific time frame, typically a year. A turn rate in this range suggests a healthy balance between inventory management and sales efficiency, meaning that the merchandise is moving well without excessive overstock or stockouts.

Turn rates that fall below this range could indicate slow-moving inventory, suggesting a need for improved marketing or sales strategies. Conversely, turn rates significantly above this range might suggest that inventory is being depleted too quickly, which can lead to missed sales opportunities due to stock shortages or increased pressure on the supply chain to keep up with demand.

Understanding this typical range helps retailers set benchmarks and evaluate their performance against industry standards, allowing for more strategic decision-making regarding inventory purchases, pricing strategies, and promotional efforts.