Retailers who have good control of their inventory take the time to set up and manage the departments in their stores, allowing them to respond more quickly to the market and buy smarter.

How many departments should you have in your store? Probably not as many as you’d think!

Managing too many departments is a time-consuming waste and doesn’t give you the important information you need to get control of your stores inventory.

Be stingy about how many departments you identify for your store, then break up your departments into classes and subclasses to make it easier to add merchandise to the correct categories.

Having a department structure in your retail store that gives you valuable, pertinent information about your business – primarily about what your customer is buying – is a critical part of good inventory management.

And a critical part of good business management for that matter!