Episode Details

A retailer I once worked with was selling children's clothes by the hundred. When we finally costed everything properly, she was making about 50 pence an item.

Hi, I'm retail strategist and founder of Resilient Retail Club, Catherine Erdly.

Most of us build a product business the sensible way round — get trading first, worry about the back end later. And that is the right instinct at the start. But somewhere along the way the sales data ends up living in Shopify, the stock data lives somewhere else entirely, the costs live in your accountant's software, and when you finally put the three side by side, none of them agree. This week I'm joined by Stacey Dorrian, who I've known since we were the two senior merchandisers at Coast, and who has spent 25 years since then working in retail data. We talk about what actually happens inside a growing product business that has never built any structure underneath its numbers.

We get into the questions most retailers never stop to ask. Are you recording your cost of goods anywhere at all? Is your best seller genuinely your best seller, or just your busiest product with the margin quietly stripped out of it? Are you staffing, stocking and reordering a corner of your business that isn't earning its place on the floor? And if you're carrying eight, ten, thirteen thousand lines, how would you ever know? Stacey explains why a sales report only ever answers one of the four questions your data is capable of answering — and why the other three are where the money actually is.

I also share the moment that retailer realised she had never had a sales problem at all, and Stacey walks through exactly where she would start if your numbers are currently a mess and the whole thing feels too big to open. By the end you'll understand why gut decisions get more expensive the bigger your order quantities get, what "sales is vanity, profit is sanity" really costs you in practice rather than as a slogan, and the three things to fix, in the order to fix them. Press play to find out where to begin.

CHAPTERS

00:00 The signals your shop is missing

04:40 The four questions your numbers can answer

06:15 Sales is vanity — the costs nobody records

12:02 Where to start if your numbers are a mess

LINKS

Apply for Stock Doctor: stockdoctor.net

All episodes: https://www.resilientretailclub.com/podcast/

Catherine on LinkedIn: https://uk.linkedin.com/in/catherineerdly

LSE Data Analytics Career Accelerator (mentioned in the episode): lse.ac.uk