Retail and consumer goods
Sell-through rate
The share of stock received that has been sold within a period.
Last reviewedWhat does Sell-through rate mean?
Sell-through rate is units sold divided by units received (or available) over a period, usually a season or a number of weeks. It tells a retailer or brand how fast a product is moving. Example: a store receives 500 pairs of shoes and sells 350 in eight weeks, so sell-through is 70 percent. High sell-through at full price means the buy was right, or too small; low sell-through means markdowns are coming. In consumer goods, "sell-in" is what the brand sells to the retailer and "sell-through" is what the retailer sells to shoppers; a gap between the two means stock is piling up in the trade.
Where does it come up in case interview prep?
- Retail players, trends, and how to crack retail casesLesson in Retail
- How luxury and fashion make moneyLesson in Luxury and fashion
- Luxury and fashion economics: channels, markdowns, and currencyLesson in Luxury and fashion
- Luxury players, markets, trends, and how to crack the casesLesson in Luxury and fashion
Related terms
- MarkdownA lasting price cut to clear stock that is not selling.
- Inventory turnoverHow many times stock is sold and replaced in a year.
- Rate of saleHow many units a product sells per store per week, in the stores that stock it.
- Wholesale (fashion and luxury)Selling goods to other retailers, such as department stores, which resell them.
- Like-for-like sales (LFL)Sales growth from stores open in both periods, leaving out new and closed stores.
- Sales per square metreStore sales divided by selling space: how productive the space is.
- Shrink (shrinkage)Inventory lost to theft, damage, errors or spoilage.
- Private label (own brand)Products sold under the retailer's own brand rather than a manufacturer's.