A figure that refers to the number of times stock is renewed in a point of sale in a year. The most extreme case of good performance in this dimension is Zara, whose inventory turnover is around 24 times a year, compared to the less than two times that stock is renewed in a typical jewelry brand. Inventory turnover is an important metric for retailers and can help companies manage their inventory levels to reduce costs and improve profitability.
« Back to Glossary IndexInventory turnover
« Back to Glossary Index