Sunday 10 February 2013

You Can't Bank Margin

According to one of our traders this is the buzz phrase for the week - "You can't bank margin".
He is referring to the propensity for retailers to sit on stock that they have brought at a great price and then steadfastly refusing to reduce their selling price despite slow sales. Having a great margin might give you a warm fuzzy feeling inside but moving stock and creating cash flow is more important. This is particularly important in a volatile retail market where today's hot product is potentially tomorrow's dud.
Thanks to Jim Antonopolous for this tip.