Business Intelligence and FMCG Glossary: #rotation
Rotation
What is the rotation of a product on shelf?
The concept of “rotation” has its roots in the field of logistics. Stock rotation refers to the number of times the warehouse or shelf inventory needs to be replenished over a period, usually one year.
By extension, the word “rotation” is often used to talk about the quantities of units of a SKU sold in store during a defined period that can be a day, a week, or a month. One can also talk about Average Daily Sales, Average Weekly Sales or Average Monthly Sales when making an average of the rotations at store level or for a more aggregated geographical universe.
The analysis and comparison of the rotations of each reference for each store allows to identify the success stories or the cases where the product proposal does not commend an acceptable level of shopper demand. This analysis is the basis for the definition of an efficient assortment making a benchmarking analysis between comparable stores or stores groups.
