By simply rethinking the way inventory is managed and controlled, there is no better place for a retailer to improve margins, net operating results and net profit than by focusing on the inventory.

 

 

YAKE & ASSOCIATES, INC.

SERVICES: RETAIL CONSULTING

 

Retail Consulting: Inventory is the best place for retailers to seize strategic opportunities and to gain a competitive edge in the marketplace. By simply rethinking the way inventory is managed and controlled, there is no better place for a retailer to improve margins, net operating results and net profit than by focusing on the inventory. Furthermore, if that focus is consistent, it should also allow our clients to achieve an abundance of market share.

 

Understanding Retail Inventory & Shrinkage Consulting: Our understanding of inventory shrinkage in the retail industry is overwhelming. Yake & Associates, Inc., was selected from a very large field of inventory consultants by the Internal Revenue Service to consult to and write written reports about retail inventories in the landmark tax cases against: Dayton’s Department Stores, Dayton Hudson, Target, Mervyns, and Wal-Mart, which were before the United States Tax Court.

 

Although a veteran of the retail industry, this engagement required extensive independent research, studying the topic of inventory shrinkage, its history, and an analysis of current industry standards and best practices. Finally, written reports were submitted to the United States Tax Court on the topic, which included over 108 causes for shrinkage in the retail industry. It is noteworthy that only three of the components we identified were theft related.

 

The research for the tax cases before the Court was immense, consuming more than two years. Time was spent reading or reviewing over 2100 books, articles, trade publications, and historical accounts of how and why retail inventories are controlled, accounted for and valued. Close examination was given to court documents from both sides of the notion that shrinkage, and the way it is measured by most retailers is accurate, predicable, and quantifiable.


 
Yake & Associates, Inc.    •     Email    •     207-985-6320    •     P.O. Box 42, Kennebunk, Maine 04043