Practicing Estimations

The best way to estimate the 'Percentage of Inventory ON Promotion'  is to visually think of the store's format.

DO NOT count inventory to try and calculate these percentages. Rather, use Visual Estimation to figure out a value that is close enough to the right answer.

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Let's walk through some examples of what we mean by visually thinking of the store's format:

Example 1:

Let's say you observe Men's Tops in 3 different areas of the store. You quickly visually think of the racks/tables that contain the Men's Tops.

For this example, assume the entire store is inside the black outer rectangle and the blue rectangles are the racks that contain Men's Tops.

• The sections in green contain Men's Tops
• The section in blue has Men's Tops that are on Promotion
• It looks like about 33% of the Men's 'Tops' are on Promotion

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Example 2:

Let's say you observe Women's Bottoms in 4 different areas of the store. You quickly visually think of the rack's/tables that contain the Women's Bottoms, and the 4 racks/tables look to be the same size. Below, the sections in gray are the rack's containing Women's Bottoms.

• Sections in blue contain all Women's Bottoms
• The sections in green have Bottoms that are on Promotion
• It looks like the green racks are about 1/2 the size of the smaller blue racks
• So, approximately 1 of the 5 racks of Bottoms is on Promotion
• Therefore, about 1/5 = 20% of Women's Bottoms are on Promotion

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