What can cause a decrease in inventory turn rates?

Prepare for the PGA Level 2 Merchandising Inventory Exam. Dive into interactive flashcards and multiple-choice questions with detailed explanations. Get ready for success!

A decrease in inventory turn rates can indeed be attributed to poor merchandise selection for the customer base. When the products offered do not match the preferences, needs, or desires of the target customers, it leads to decreased sales. Essentially, if the merchandise does not appeal to the customer base or is not what they are looking for, it will remain unsold for longer periods, resulting in a lower turnover rate. The mismatch between inventory and customer demand is a significant factor that directly impacts how often inventory is sold and replenished.

In this scenario, while factors such as effective merchandise promotions, low pricing strategies, and high customer satisfaction rates typically contribute to increased sales and possibly higher inventory turns, they do not address the fundamental issue of merchandise not resonating with customers. This highlights how crucial it is to ensure the right products are selected for the market demographic to maintain optimal inventory turnover.

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