6 Inventory Control Tips to Boost Retail Sales During Ramadhan & Raya

Maximizing Profits During Ramadhan and Raya

Ramadhan is an essential period for businesses in the Muslim world as it is a time when Muslims around the globe fast, pray, and spend time with their families. During this time, there is a surge in demand for various products, including clothing, foods, home deco products, and gifts, among others. As a result, businesses must be well-prepared to cater to this increased demand, and this is where inventory control and marketing strategies come into play.  In this blog post, we'll explore 6 effective tips for inventory control and marketing planning for Ramadan.

1. Analyze Previous Year Sales Data
2. Plan Inventory Level
3. Offer In-Store Promotions
4. Offer Online Promotions
5. Develop Marketing Strategies
6. Track Real-time Sales
   

1. Analyze sales data from previous years to Identify the most popular products

Review sales data from previous Ramadan periods to identify the products that have historically sold well during this time. This will help you plan your inventory levels and determine which products to prioritize in your marketing efforts. Some of the key reports that retailers may use to analyze previous year sales data include:

• Sales by product: This report provides information on which products/ SKU were sold during the previous year and how many units were sold.

• Sales by product category: This report provides information on which product categories were most popular during the previous year, such as clothing, shoes, bags or accessories.

• Sales by brand category: This report provides information on which brand categories were most popular during the previous year, such as your product brand A, brand B or C.



• Sales by outlet: This report provides information on which outlet locations had the highest sales during the previous year.
  

2. Plan your inventory

Once the operational team analyzes sales reports data to determine optimal inventory levels for each product and outlet. Next it's important to plan for lead time, storage space, and retail store layout before placing an order with suppliers. By doing so, we can minimize the risk of overstocking or stock-outs, which can negatively impact sales and customer satisfaction.

Lead time:



Lead time refers to the amount of time it takes to receive products from suppliers.

If you expect to sell your product on 1 March 2023 and your supplier lead time is 3 months, you should start ordering the product at the latest by 1 December 2022. By placing your order in advance, you can ensure that you have enough inventory on hand to meet customer demand and avoid any potential stock-outs or delays.

Storage space:

To conduct a thorough analysis of your warehouses and outlets to determine how much storage space you have available. Such as measure the square footage of your warehouse's racks and outlets' shelving units.

Retail outlet layout:

Choose a prominent area in your retail outlet to display your Ramadhan & Raya sale items. This could be a dedicated sale section or a featured display at the front of the store. Make sure the display is eye-catching and draws customers' attention.

Organize your Ramadhan & Raya sale items by category to make it easy for customers to find what they're looking for. For example, if you're having a sale on clothing, group items by type (e.g. shirts, pants, dresses) and size.

3. Offer In-store Promotions

Offering promotions can be a highly effective way to generate immediate purchases and increase sales revenue for your business. By using a POS system that automatically applies promotions and discounts during the promotional period, your retail business can enjoy faster and more accurate pricing updates, while avoiding pricing errors that can hinder the checkout experience for customers.

Here are four of the most commonly used retail promotions in Malaysia:

• Buy One Free One: This promotion encourages customers to purchase one item and receive a second item for free. This can be a great way to move inventory quickly and generate instant sales.

• Bundle Deals: Offer a bundle deal where customers can purchase multiple items at a discounted price. For example, buy a shirt and pants together and receive 20% off the total purchase price.

• Flash Sales: Host a flash sale for a limited time, such as a 24-hour sale, to create a sense of urgency and encourage customers to make purchases quickly.

• Gift with Purchase: Offer a free gift with purchase to encourage customers to make a purchase. For example, offer a free gift cards or Ramadan-themed products with a purchase over a certain amount.
  
  

4. Offer Online Promotions

To attract more customers during the Ramadan period, your online shop can provide promotions similar to those in retail stores, or offer "Free Shipping" as an incentive for customers to make purchases. This is an effective strategy to reduce cart abandonment rates and increase sales.

Additionally, another option to consider is offering a "Buy Online, Pick Up From Store" service, which allows customers to shop conveniently from their homes and pick up their purchases from your physical store. This approach can save your customers time and provide a seamless shopping experience.

5. Develop Marketing Strategies

Once you have planned your inventory and promotions, the next step is to develop effective marketing strategies to promote your deals and drive traffic to your retail outlet.

Create Social Media Campaign:

Create a social media campaign that focuses on your Ramadan sale. This campaign should include eye-catching graphics and relevant hashtags that highlight your promotions and post it on social media platforms like Instagram, Facebook, Tiktok, etc.

Encourage your followers to share their own photos and experiences of your Ramadan sale, and share the best content on your social media channels. This can help to create a sense of community around your brand and boost engagement with your followers.

Leverage Influencers:

Work with social media influencers who have a strong presence within the Muslim community to promote your Ramadan sale. These influencers can help to amplify your message and reach a wider audience. Look for a halal influencer from Google search keywords like “halal brand influencer [your country]” or “restaurant influencer [your country].

6. Track Real-Time Sales

Check your Ramadhan all outlet sales in real-time to ensure that they align with your inventory strategy.

With JPOS, you can track each outlet’s SKU sales and inventory level through a real-time dashboard.

• Make instant adjustment on marketing strategies to boost sales
• Replenish out-of-stock sizes/ color quickly
• Transfer slow-moving stock to a popular outlet quickly

JPOS also comes with a fully integrated inventory option so you will better manage your stock across all the outlets.

Finally, it's important to support your fasting staff during Ramadan by accommodating their religious practices. This may involve adjusting their working hours to align with their fasting routine and offering them breaks for prayer and rest. By creating a supportive and inclusive environment, we can help our staff to feel valued and motivated, and ultimately improve productivity and job satisfaction.