Read assortment through GMROI
Use GMROI to distinguish attractive jewelry inventory from cash tied up in the case.
The move: judge assortment by return, not just sparkle or sales. Why sales can mislead A jewelry category can produce impressive revenue while carrying too much inventory. High tickets hide slow turns. High margin percentages hide weak dollars. GMROI keeps the three forces together: margin dollars, inventory cost, and time. How managers use it Start with one category, not the whole store. Calculate gross margin for the period and divide by average inventory cost. Then label the role of the inventory. If a line has low GMROI but creates bridal traffic or anchors a designer story, keep it deliberately. If…
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