Find your Goldilocks zone

By Cathy Donovan Wagner

Find your Goldilocks zone.

As a coastal retailer, you know the rhythm of your business is tied to the tides — seasonal tourists rush in, your store buzzes, then quieter months follow. But even with strong sales during peak season, sometimes your cash flow doesn’t feel particularly healthy.

Many stores fall into the “buy, sell, restock” cycle without realizing how much cash is tied up on shelves. Even with busy foot traffic, your profits can feel trapped if your inventory isn’t turning fast enough. Understanding your “Goldilocks zone” (not too much, not too little) is the key to freeing up cash, energizing your store and keeping customers excited.

Step 1: Check inventory turn

Inventory turn tells you how many times you sold through your stock over a given period. To calculate, inventory turn = annual sales / average inventory.

"Understanding your “Goldilocks zone” (not too much, not too little) is the key to freeing up cash."

For many retailers, a turn of around three is ideal. Remember, seasonal items or higher ticket products may turn slower, while trend-driven items move faster. The goal is a smooth, consistent flow that keeps your store profitable.

Step 2: Measure inventory freshness

Next, look at how much of your stock is older versus newer. Take your new received goods from the last 90 days and divide by your total inventory at retail. Aim for roughly 70% new inventory at any time. This ensures your displays feel lively, your customers stay engaged and your cash isn’t sitting stagnant.

Step 3: Free cash and energize your store

Once you know your Goldilocks zone, mark down slow movers, reorder smartly and prioritize items with strong margins. When inventory flows in harmony with your sales, your cash becomes a tool, not a bottleneck.

Strategic buying keeps your store profitable, nimble and ready for every peak and every slow day.

Cathy Donovan Wagner helps store owners scale sales past 7 figures. Check out her Richer Retail Podcast.
847-622-8382, clientcare@retailmavens.com, retailmavens.com/richerpodcast