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GMROI and sell-through
Track the margin returned on inventory and how fast stock sells, by category each season.
Finance & unit economicsRetail & ecommerce
How it's worked out
- GMROI = gross margin ÷ average inventory at cost. Sell-through = units sold ÷ units received
- Same period; inventory averaged over it
NoteGMROI above 1 means inventory earns more margin than it costs to hold. Compare categories, not the whole store.
Source: Retail merchandising practice (NRF)
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