FAQ: What is the Sales Velocity Report and how do I read it?
Sales Velocity reports on weekly sales for 12 weeks ending at the selected date. The report contains four metrics per week:
- Sales: indicating the number of units sold for the given week in the current fiscal year
- Velocity: calculated as the percentage of the previous weeks ending on-hand inventory that sold
- LY S: indicating the number of units sold for the given week in the previous fiscal year
- LY V: the percentage velocity as calculated above for the week in the previous fiscal year
All Sales are reported in Units.
In general, the goal is to achieve 100% Sales Velocity. If the product typically ships weekly, velocity combined with Stock Out reporting can be used to determine optimal inventory levels and shipments for a specific location. When products ship less frequently (especially Vintages products), velocity can be used to determine the overall weekly performance of a product.
In the case where velocity is at 0%, either there were 0 sales, or the store stocked out the previous week.