The Daily Close
Register close, dual-custody cash count, point-of-sale to tracking reconciliation, discount and void review, deposit preparation and documentation, all completed the same day.
Inventory Control
Cycle count by category on a rotating schedule, investigate variances against a written tolerance, and require approval for every write-off with a documented reason.
- Rotating cycle counts rather than annual physical counts alone
- Expiration and slow-moving product monitoring
- Sample and destruction documentation
- Receiving verification against transfer manifests
Discounting and Promotions
Discount penetration should be measured as a percentage of gross sales, by staff member and by product category. Unmanaged discounting is often the largest single margin leak in retail.
Margin Analysis
Analyze margin by category, brand and product form, and compare against inventory turns. Slow-moving high-margin product and fast-moving low-margin product require different responses.
Frequently Asked Questions
- How often should physical counts occur?
- Use rotating cycle counts on a defined schedule so that every category is counted regularly, supplemented by full counts as policy requires.
- What discount penetration is reasonable?
- It depends on the market and strategy. The important step is measuring it consistently and setting an internal threshold.
- How should shrink be recorded?
- As a documented adjustment with cause code and approval, reconciled to the tracking system, and reviewed for trend by location and shift.