Proper rotation optimizes turnover. Product rotation - basic principles and objectives

Start of the cycle

The original meaning of the word “rotation” is “movement”. It’s not surprising, since the goods are initially moved from the distributor to the retailer’s warehouse, and then in parts they reach the sales floor. Despite the simplicity of the scheme, when working with a wide range of products, this process is very complex.

The first stage of movement of goods is its acceptance from the supplier. To regulate it, it is necessary to discuss, when concluding contracts, the shelf life of the goods, the minimum shipment rate, and delivery deadlines. The shorter the shelf life of the product, the more attention each of these points requires.

Delivery time

The shorter the shelf life of a product, the higher the requirements for the remaining shelf life should be. On average, it should be 50-70%% of the total gap. It is possible to agree with the supplier on a product with a shorter deadline than agreed. But in this case the supplier assumes all risks. And it reduces the price (5-10%%), taking into account the retailer’s troubles.

Minimum quantity

If the network operates through a distribution center (DC - hereinafter), then collecting a general application is quite simple. It is more difficult to agree with the distributor on the delivery of small quantities to each individual store. Preference can be given to brands whose distributors supply a significant range of diverse products. It’s easier to put together a strong application.

Application deadlines

Self-respecting distributors practice delivery within 24 hours within the city where there is a warehouse. And 48 hours - to any other point. For other distributors, such terms can be set as a condition of work. If they cannot fulfill them, there is no point in supporting market outsiders. It is more difficult to work with suppliers (including manufacturers) who do not have developed logistics services. In part, this issue can be resolved with your own transport (if it is within the same city and subject to an additional discount, of course).

Delivery time is so important because it is advisable for a retailer to place orders with a minimum amount of goods left in stock.
Proper rotation allows you to save warehouse space, each M2 of which is very expensive in modern conditions.

Order planning

Quantitative Rotation

An optimal order cycle allows you to save warehouse space and funds invested in goods, or take advantage of the distributor's deferment, turning the goods faster than its deadline.

The calculation of an order depends on several components. First, it is necessary to determine how often deliveries should be made. Secondly, it is necessary to determine the average sales for this period. This way you can get the required stock in the warehouse. To this it is necessary to add stock in the hall, because the goods are also needed for display in the window.

Total: Order of goods = sales for the period + quantity of goods for display - inventory balance.

By shortening the periods between orders, the size of the order can be reduced, and therefore there will be less need for store warehouse space.

Quantitative order planning allows you to save warehouse space and rationally invest in goods.
Delivery costs should not exceed the cost of using the money. In other words, if it is cheaper to purchase goods in larger quantities than to frequently transport them in smaller quantities, then it is worth going this route.

I repeat: the larger the distributor, the more profitable it is to purchase goods from him. It's easier to make a meaningful application. It is likely that consolidation will continue to occur in the distribution business, leading to the dominance of all-Ukrainian operators and uniform delivery and pricing standards.

Rotation according to deadlines

The most difficult element of rotation. The FIFO (first in – first out) principle, which means the following, will be mandatory. The consignment of goods that arrived at the warehouse earlier goes to the hall earlier.

Using an everyday example, a violation of this principle looks like this. Let's assume that the 1st batch of goods is capitalized and placed in the warehouse in the appropriate cell. Naturally, it was not sold without reserve and at the time of the arrival of batch No. 2 there were 2 boxes left from batch No. 1. The loader, following the method of least resistance, unloaded lot No. 2 onto the remainder of lot No. 1.

The seller, taking care of the remaining goods in the hall, comes to the warehouse for replenishment. He also takes the simple route and takes the top drawer, which belongs to lot #2. And this can continue indefinitely, or until the supplier’s supply fails; or sales unexpectedly exceed expectations. In this case, the inventory balances will be “cleaned out” to the end and the remains of batch No. 1 will be revealed. Naturally, the goods in them will often be expired.

This is an example of the most common mistake. Unfortunately, there are known cases when batches No. 1, 17 and 24 were mixed in the warehouse. It was simply impossible to do without checking each box. And the supplier will be right if he refuses to accept claims for a product whose expiration date has expired, say, a month before the retailer contacts us.

The solution is constant monitoring by sellers and warehouse managers of not only the quantity, but also the timing of the remaining goods. All boxes should be turned with the tags facing out so that the end date is visible.
Another option is to reconcile deadlines along with shift changes.

Rotation according to price

For most products, prices change several times a year. And for some, both upward and downward. A classic example is dairy products. The peak of its consumption is in winter, as well as the peak of prices for dairy raw materials. In summer, on the contrary, both demand and purchase price drop. The question arises of how to regulate the price. The option to recalculate balances is unreasonable. These operations will take an incredible amount of time. Recalculation exactly after the sale of the last unit of goods received at the old price is only externally optimal, but technically it is very difficult to implement.

This will especially affect work with price tags. Sellers will constantly receive complaints about the discrepancy between the price at the checkout and the price tag on the window. This technology is a matter of the future, when control methods will be improved and price tags will be managed from the central office.

For now, even among retailers that use electronic price tags (like Tavria V), each of them is configured manually. The most common practice is to change prices the next day after a new arrival. It is assumed that during this day the remaining stock may be sold at old prices.

Product rotation is one of the basic rules of merchandising. This is the procedure for moving and replacing goods both in the warehouse and on the sales floor. It is rotation that helps increase revenue without requiring such significant investments as advertising. Rotation is applicable mainly to everyday products, among which there is a high percentage of impulse purchases (this will also be useful to me) and passive demand (I don’t know what it is, but I have to try it). As a rule, pre-selected goods (furniture, cars) do not need to be rotated.

Rotation results and ways to achieve them

The result of rotation is an effective, competent arrangement of goods on the sales floor and in the warehouse. Qualitatively, the result of rotation is convenient, attractive shelves, quantitatively - reduced costs and increased revenue.

Rotation helps achieve the following goals:

1. Minimize losses from unsold products with expired shelf life;
2. Create a positive image of the company, so-called goodwill. Currently, this is one of the most important intangible assets, which not only determines the attitude towards the brand and its popularity, but is also a significant competitive advantage in the market;
3. Stimulate demand by accelerating the promotion and sale of goods.

To achieve these results, using rotation it is necessary to solve the following problems:

• create the impression of a constantly changing assortment;
• increase the number of related and spontaneous purchases;
• sell products with a margin of time before the expiration date;
• minimize storage space;
• get rid of old, stale remains.

To understand the significance of solving these problems, let’s consider each of them in more detail.

Constant updating of the assortment

A buyer, constantly coming to the same store, should not get used to a certain arrangement of product groups in the room and brands on the shelves. Even if the store is going through hard times, the buyer gets the feeling that the assortment is constantly changing, the store is “living,” which means the purchases here are the freshest, new items are available earlier, and discounted products are immediately noticeable. Demand in such a store is higher than in places with a once and for all selected and arranged assortment.

Related products

Related products are those that are often forgotten to buy; they help to use the main product or smooth out its shortcomings. Related items also include consumables and replacement parts. For example, body sponges will be purchased together with shower gel, and dish sponges made of the same foam rubber from the same manufacturer will be purchased with dishwashing liquid.
But if there is no shelf with the necessary sponges next to the gel and product, the buyer will most likely forget to buy them. In stores, profits from the sale of related products can be up to 10%.

Impulse purchases

Spontaneous, or impulse, purchases are made under the influence of emotions and momentary desire. These products are never listed and there are no clear, conscious plans for their purchase. Research conducted at retail outlets shows that in Russia, 79% of buyers make spontaneous purchases, thereby increasing the average bill, and therefore profits.

Shelf life

Products that are about to expire are often sold at reduced prices to avoid spoilage and waste. Daily monitoring of expiration dates both in the warehouse and on the sales floor and timely rotation help to achieve full sales on time, without reducing revenue by the discount percentage.

Warehouses

Proper rotation and maximum display of products in sales areas allows you to save warehouse space, each additional meter of which significantly affects the profit received.

Remains in warehouses

Products even with a long shelf life become obsolete, new actively advertised analogues appear, and the appearance of the packaging changes. As a result, there is a chance to permanently freeze the funds invested in the purchase and, accordingly, incur losses.

Product rotation: pros and cons

The main advantages of applying the principle of rotation in trade are monitoring the safety of goods, reducing costs for warehouse space and increasing impulse purchases. Competent, timely rotation in the store also allows you to:

• increase the time the buyer spends in the store and the number of product groups he sees;
• make more active use of the consultant’s work, thereby managing demand;
• conduct a comparative analysis of the effectiveness of retail locations and use space more efficiently.

Excessively active rotation can also have negative consequences in the form of loss of customers. A person who every time has to look for where his favorite ketchup is now will next time go to a more stable competitor. This is especially significant for conservative consumers, whose share, according to statistics, ranges from 12 to 18%.

Types of product rotation

The order of sales, the quantity of products ordered from the supplier, and even the price of the goods depend on properly organized rotation. Depending on these factors, rotation is divided into 3 types: by quantity, cost and timing of product sales.

Quantitative Rotation applies when ordering from a supplier. It is based on the analysis of warehouse accounting and inventory data for previous periods. Depending on the frequency of deliveries, the quantity of products to be ordered is calculated. The stock of goods in the warehouse should be sufficient for the entire time until the next delivery, as well as to ensure that the display cases are filled at the end of this period.

Thus, the order = estimated sales for the period + goods needed to fill the shelves - goods currently on the shelves.

The amount received is adjusted depending on the type of product. For example, if this is a product with a quick turnover, it is better to have it in stock and order it with a reserve. Perishable products must be completely moved from the warehouse to the hall before the arrival of a new batch, and deliveries of goods must be made more frequent.

Rotation by expiration date is carried out so that the goods that arrived at the store earlier are sold first, that is, movements occur according to one of the warehouse accounting methods - FIFO (First In, First Out - first in, first out). This type of rotation fully justifies the daily extra effort and begins to be used already in the warehouse: when new batches of goods are received, the previous ones should be rearranged closer to the aisle, tags on boxes with expiration dates should be located so that the information on them is easy to read.

On the sales floor, you need to ensure that the shelf is always full, delivering goods from the warehouse on time. On the shelf, products with a shorter shelf life are placed in front and on the sides, while freshly displayed products are located in the back. To do this, all products are removed from the shelf, new ones are loaded, and then the old ones are returned, while sorting and removing expired goods.

Rotation by price carried out when the price of a product changes. Frequently replacing price tags requires significant effort and is associated with a high probability of errors, and therefore customer dissatisfaction. In this regard, it is generally accepted to change the price at the checkout one day after notification of the change. During this time, the old batch will be partially sold out, and the price tags in the hall will be guaranteed to be replaced.

In stores selling over the counter, the price is often changed only after the old batch is completely sold out; in small retail outlets, for example, pharmacies, price tags may be on each package.

Rotation rules

The movement of goods in the warehouse and in the store must obey special rules that are designed to attract the buyer’s attention, mitigate the disadvantages of rotation and reduce costs.

The following rules must be observed in the sales area:

1. Products must be arranged by product groups, matsoni should be next to kefir, and combs not far from shampoos. It is better to display related products in 2 places at once: next to the main one and on a shelf with a group of products. For example, a small selection of paint brushes is placed in the paint row, and the main assortment is in the tools;
2. The front side of the packages on the shelf should be facing the buyer;
3. Products are located at the edge of the shelf, and not in its depth. Even if there is no longer a similar product in stock, the remnants must be pushed to the edge of the shelf so that the front row is filled;
4. Products that need to be sold faster are moved to shelves at eye level. For children's toys, the same principle is used, but a lower shelf is used: children themselves should clearly see the entire assortment;
5. The length of the shelf that a product occupies should be proportional to the demand for it: in-demand products should occupy a larger area. To display less popular brands, 40 cm in a row is sufficient;
6. When rotating in the hall, you cannot move the goods far from the previous place; in this case, some buyers will leave without purchasing. As an option, to facilitate orientation, large bright signs and signs are placed in the hall.

In the warehouse, schemes are developed in accordance with which the products are placed. At the same time, goods of daily demand are placed closer to the loading area. In the depths are rarely purchased goods and reserves. It is more convenient to place heavy, bulky packages nearby; small items - in any free space in the warehouse.

Conclusion

Rotation of goods is the main way to increase revenue and reduce losses of expired goods, which does not require significant costs. When used correctly both in the warehouse and on the sales floor, rotation contributes to sales growth and improvement of the company’s image.

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Proper product placement will increase revenue without spending on advertising and equipment. More than half of buyers do not go to the store with a list of necessary products or things. They are the ones who make spontaneous purchases, moving from one rack to another.

Rotation is the principle of laying out, moving and demonstrating goods on shelves to increase turnover. There are many strategies to attract a buyer's attention and make a purchase. There is no point in applying everything at once. When choosing an action plan, the following are taken into account: location, demand, category of customers, revenue, assortment.

The use of rotation in retail has both positive and negative sides.

The positive ones include:

1. There are no problems with expired expiration dates - initially, products with a suitable expiration date are placed in the foreground, and fresh products are placed in the background.
2. Products from related groups are placed in the visibility zone, which increases sales and the average check. For example, washcloths, soaps, and scrubs are displayed next to shower gels. In grocery stores, the dairy products area is adjacent to cheeses and butter, alcohol – chocolate, snacks.
3. Essential goods are located in the “golden triangle” zone. The “Golden Triangle” is the buyer’s movement along the route: the entrance to the sales area – the necessary display case – the cash register. Daily necessities include bread, milk, sugar, tea. According to rotation, the counter with such products is located in the far corner of the store. This is a psychological trick: while a person is walking to the refrigerator with milk, he will visually inspect the store’s assortment and want to buy something else.
4. Constantly updating product information. Bright price tags, advertising stands, mini-signs.
5. Consultations on a new product item.
6. Proper placement of light sources leads to increased turnover.
7. The seasonal display is formed within walking distance according to the price range.
8. Analysis of the effectiveness of retail premises and individual positions.

To the negative:

1. The product deteriorates if it is not moved according to its expiration date.
2. The lack of price causes dissatisfaction and a feeling of deception.
3. Incorrect product placement and poor lighting lead to decreased interest or disregard for the display.
4. It is not possible to analyze individual groups.
5. Without advertising and consulting there will be no demand for new positions.
6. Violation of the proportionality of placement leads to a drop in consumer demand.

Types of display

A correctly arranged store assortment stimulates the buyer to purchase. It is possible to place several types of product display at once on the area of ​​a retail outlet.

By category

Fruits for vegetables, bread for confectionery, soap for washing powders.

By manufacturer or brand

The entire rack is dedicated to one brand, and the manufacturer pays the owner of the retail space for this. Incoming merchandisers monitor the filling and compliance of the planogram.

On display (portable rigid cardboard stands)

Used as an addition to the main display. They are located on the main routes of movement of customers.

On pallets

A large number of promotional goods are on a pallet not far from the main display cases;

Shaft layout

The goods are not displayed on racks, but are dumped in one heap with a single price tag. Used during seasonal sales. A general price tag is posted on a pallet or large basket (for example, “Everything for 200 rubles”).

Mass

Suitable for displaying high demand products. Good sales of product units are achieved by attracting attention in large quantities.

Vertical and horizontal

The most common option, which is found both in small shopping pavilions and in hypermarkets. The principle is based on placement across and along the display window.

An important rule of retail trade is that searching and choosing a product should not cause difficulties for the buyer.

There are 3 types of arrangement:

1. The top level is the height of the arms.
2. Medium level – eye height (high price positions or promotions).
3. The lower level is near the floor.

To increase sales of a low-demand item, simply raise it to eye level.

In accordance with the rule, the display should be carried out according to the following principles:

1. Good review. A person’s gaze perceives no more than 5 positions, the place for each is allocated taking into account popularity and necessity. The product is displayed strictly on its front side. The information on the packaging should be easy to read.
2. Availability. For convenience, all heavy products are placed on the lower shelves, and light ones on the upper shelves.
3. Filling. Store visitors should have a visual impression of abundance. To achieve this, display cases are constantly replenished and aligned to the front edge.
4. Priorities. Expensive and popular items are displayed at eye level and arm's length.
5. Purity. Debris and dust on the shelves is unacceptable. Cleaning must be done on schedule.
6. Price segment. You can’t mix expensive and cheap in one space. It is worthwhile to arrange product units by price segment.
7. Logic and space. The buyer at the entrance must understand, even without knowing the location, where to get the necessary products or things.
8. Compatibility. In case of product proximity, the assortment must be combined in size, price, and category. There should not be items nearby that negatively affect each other (bananas and apples, tea and spicy seasonings). Product groups similar in use increase turnover (dumplings and sauces, low-alcohol drinks and chips).
9. Height. The distance between shelves must correspond to the height of the product.
10. Color combinations. The human eye will always react to a bright color, so the arrangement is made in the direction of movement from light to dark.

Posting rules

When arranging shelves and display cases, the assortment of product units, demand and purchasing power are analyzed.

Inexpensive assortment groups are placed in the checkout area and display cases so that the buyer does not decide at the entrance that this store is expensive and leaves. The price category increases as you move.

At foot level there are products for informed purchases. A person will want to find what he needs on his own (sugar, cereals, pasta, water).

The rows alternate between expensive and cheap; at the beginning of each, popular manufacturers are displayed, so the buyer will want to buy more.

Development and construction of planograms

To increase purchasing power and attract attention during display, a planogram is used.

Planogram– this is a table or photograph with the location of product groups.

Development occurs in a certain sequence:

1. The idea of ​​a retail outlet, its goals and objectives are formed.
2. All display cases and racks are drawn on the computer, and assortment groups are roughly designated.
3. Coordination with management.
4. Layout of product items taking into account the planogram.
5. At regular intervals (month, quarter, year), performance analysis is carried out to further improve merchandising.

When drawing up the diagram, the following is taken into account:

1. Square– when allocating space, it is calculated how much profit the product will bring. The higher it is, the more shelves are given away.
2. Impulse purchases– product units with the potential for arbitrary purchase are located next to products of high demand.
3. Increased demand– “strong” zones (near the cash register, at the beginning of the row) are given over to popular positions.
4. Related Products– complementary products are laid out side by side.

Proper placement and display of product units directly affects the efficiency and turnover of the store. It is important to take into account the dependence of sales volume on the allocated area. Using a planogram increases customer flow and throughput while reducing employee time.

A rational approach to assortment placement allows you to improve the quality of service, creating competition in the sales market.

In trading, there are many techniques and mechanisms that are used to increase and extract maximum profits. One of these methods is called “product rotation”. What it is? Let's talk about this phenomenon, its types and methods of application.

Rotation concept

The word “rotation” came into our everyday use from the Latin language, where it meant “rotation, movement in a circle.” Most often we hear about the systematic movement of employees, most often management personnel, to improve the efficiency of the organization. The concept is also found in the printing industry, where this term refers to the operating principle of the printing machine. In agriculture, rotation is the replacement of a crop during sowing, when, to increase the efficiency of land use, crops are moved across plots every few years. It also exists in television and radio broadcasting, where it denotes the frequency of repetition of a video or musical composition. Recently, the term “product rotation” has appeared in commodity science. What is this? This is also a circular movement of goods on shelves or in storage areas. In almost all cases, rotation is related to the efficiency of a system; it involves replacing some elements with others to improve the process.

Definition of the concept

In the field of trade organization and merchandising, the term “product rotation” is used. This is the process of moving goods on the shelves of retail outlets and in the warehouse in order to ensure greater sales efficiency. Only an ignorant observer might think that the goods on the floors stand motionless until the moment of purchase, that the seller only needs to arrange them beautifully and wait for the buyers to pick them up. But in fact, the product is in constant motion, and at every stage of this path the seller pursues the main goal - to minimize costs and increase profits.

Rotation principles

In a broad sense, product rotation is the replacement of one product with another in order to increase sales. The main principle of this action is to stimulate customers to buy. So that he has confidence in the seller and a desire to purchase the product. Another principle of rotation is maximum efficiency in the use of retail and warehouse space. At the same time, all the rules for rotation of goods come down to the requirement that the shelves at the retail outlet must be filled. The buyer should have a feeling of an abundance of goods and a large selection.

Rotation functions

Product rotation is one of the promotion tools, part of merchandising. Its main goal and function is to stimulate the buyer to purchase the product. As part of achieving this goal, rotation should create in the buyer a feeling of constant updating of the assortment and freshness of products. There are rules for product layout that help increase sales. Rearranging products and display features help increase sales. It is human nature to pay attention to new things and experiment with purchases. Moving a product increases search behavior and also drives sales. Rotation also allows you to speed up the changeover of the assortment and helps quickly get rid of stale products. Any grocery store knows what problems arise with products that have reached the end of their shelf life, and one of the sales tools here is rotation. Fast sales of goods allow you to speed up the release of warehouse space, which also leads to minimization of costs. Of course, this method is not a panacea, it has both advantages and disadvantages, but it is one of the effective tools for cost optimization.

Advantages and disadvantages of rotation

Product rotation is a way to convince the buyer to make a purchase. Its main advantage is the ability to find the “right” place for the product on the shelf, which will increase sales. Rotation allows you to combine items on the sales floor, which also helps increase sales. For example, next to shower gels you can display washcloths, body care products, and towels. Such a complex will help the buyer make a “package” purchase. This method allows you to take into account the seasonality of goods and display current goods in more visible places, which also speeds up the sale of goods. During the rotation, you can conduct analytical studies to assess the effectiveness of certain points in the store and take this into account when drawing up a merchandising planogram. Rotation allows for more efficient use of retail and warehouse space.

Its disadvantages are that it must be carried out thoughtfully and justifiably, otherwise the economic effect of such actions may be unpredictable. If you do not take into account the rules for the proximity of different groups of goods, you can get negative sales dynamics. If you do not analyze and monitor during rotation, you can also get a negative economic result.

Rotation in warehouse

The movement of goods at each stage must be subject to the general principles of expediency and assistance to sales. To do this, goods are rotated in the warehouse. Its main goal is to sell goods before expiration dates. Therefore, an immutable rule applies here: the goods that first arrived at the warehouse must be the first to be put on display on the sales floor: “first in, first out.” Warehouse workers must closely monitor the shelf life of goods and move stale goods to store shelves in a timely manner. The science of inventory management requires the employee to understand the mechanisms for selling goods and the ability to keep strict records of the assortment and shelf life of each batch of goods.

Today, products in which goods are stored directly on the sales floor are becoming widespread. Here, logisticians will need special skill in order not to push goods with earlier shelf life deeper into the rack, so as not to lead to the need to write them off. The merchandiser must monitor deadlines and bring out expiring goods on time for everyone to see; most often, pallet display is used for this, i.e. display of goods in the form of a cube or pyramid in the center of the hall.

Rotation in the retail space

For the effective movement of goods at a retail outlet, coordinated work between warehouse and sales floor employees is necessary. The company must develop a unified system and create a plan for moving goods in the warehouse and in the hall. This not only helps to sell products faster, but also simplifies the work of staff. When thinking about what rotation of goods in a store is, you need to remember that this is not a meaningless rearrangement of goods from place to place, but a reasonable movement. First of all, it is justified by the shelf life of goods.

There is an unshakable rule: the closer the shelf life is to completion, the closer the product should be to the buyer. That is why sellers and merchandisers constantly rearrange packaging with goods that will soon expire in the first row, and fresh goods in the second and beyond. At the same time, you cannot leave only old goods on the shelf, hoping that they will be sold out and then put on fresh ones. Consumer psychology suggests that people are less willing to take goods from a half-empty shelf. He should have a feeling that the product has recently arrived; this causes him to associate it with the freshness of the product. Rotation of goods on the sales floor is also associated with attracting the buyer's attention. Therefore, the merchandiser must think through the display, make sure that the buyer takes more units of products and chooses the most expensive product.

Types of rotation

When answering the question of what is product rotation in a store, it is worth dwelling on its varieties. There are several main types of this procedure.

• Rotation by cost. The most difficult and costly way to transport goods. It consists in the fact that the display of goods is combined with a variation in price. For example, for seasonal goods displayed in the center of the hall, the price may be slightly increased. But at the same time, you need to carefully monitor prices from competitors. On the contrary, for a product for which demand is decreasing, the price can be reduced and this can be accompanied by a certain display and promotion.
• Rotation by quantity. It is related to purchasing and inventory planning. The purchasing specialist must carefully plan and track the quantity of goods and ensure their systematic movement from the warehouse to the sales floor, and from suppliers to warehouses.
• Rotation according to shelf life. We have already talked about this type. In this case, the old product should always reach the buyer before the fresh one.

Rotation Strategies

Experts, answering the question of what product rotation means, note that it is not just “rotation” of goods in a store. This is careful planning, analysis and thoughtful rearrangements. The merchandiser and merchandiser must conduct demand analytics and, in accordance with this, conduct the purchase of goods and their movement in the warehouse. Proper procurement and warehousing helps reduce storage costs and minimize the amount of goods written off. To ensure proper movement of goods, the company must develop a unified rotation strategy, which includes logistics, promotion and merchandising solutions. These strategies can be based on stimulating trial or repeat purchases, using knowledge about consumer psychology, and economic and pricing mechanisms to stimulate demand.

Among the tricks that are used in trade in order to increase the speed and volume of product sales, there are a lot of mechanisms and tricks that help to achieve this. One such mechanism that promotes sales is product rotation. What is this in trading? In this article we will try to figure out what it is and how it is used.

Theory

The word “rotation” came into modern language from Latin and translated means “to move in a circle, rotate.” Activities related to this concept are found in various fields.

Few people have not heard the expression “personnel rotation”. This expression is closely related to the movement of employees, usually referring to the management of organizations, in order to improve the efficiency of the company as a whole.

In printing, this concept is associated with the operating principle of the printing press. The most significant part of the printing press is the rotary mechanism. In agriculture, the alternation of crops that are grown in the same area is called crop rotation or rotation. In the television and radio industry, rotation means periods through which commercials, advertisements or music are repeated.

In merchandising there is also the concept of product rotation. It is this concept that we will understand today.

Definition

Merchandising and trade organization often face the need to move goods in retail outlets or warehouses. This process is called product rotation in trade. All this is carried out with the aim of increasing sales, and therefore profits. Rotating products on the sales floor is an effective way to increase sales.

Those who are far from trade think that products stand motionless on the shelves from the moment they arrive at the store until the moment customers purchase them. In reality, everything is completely different. Products are constantly moving and the main purpose of these movements is to increase sales.

How does this happen

In its broadest sense, product rotation is the replacement of one product with another, the main purpose of which is to increase the sales performance of a retail outlet. The fundamental principle of these changes is to push the buyer to purchase a particular product. In addition, an important principle of rotation is to increase the efficiency of using warehouse or retail premises.

Rotation on the sales floor serves to increase sales and the main requirement for these movements is that the store shelves should always be full of goods. When arriving at the store, the client should not see half-empty shelves.

Goals and functions

Since the movement of goods serves the main purpose of trade - increasing sales, it is part of merchandising. To achieve its goal, rotation must give customers the impression that the product is constantly changing, and therefore fresh.

In addition to the movement of goods, there are also rules according to which products are placed on shelves. Compliance with these rules, together with constant movement, allows you to increase store revenue.

People are attracted to something they think is new, which they want to try and therefore buy. Moving products around on shelves allows you to draw attention to products that customers may not have previously noticed.

Another function that rotation performs is to increase the speed of assortment updating. Anyone who has ever dealt with trading knows how difficult it is sometimes to get rid of goods; the deadline for selling is already approaching. This is where moving comes in handy. Proper arrangement and placement in the sales area, coupled with proper rotation, allows you to free up space in the warehouse, which also reduces costs.