Which merchandising condition is most closely linked to a high turnover rate?

A high turnover rate in merchandising indicates that products are selling quickly and being replenished frequently. This is most closely linked to having less inventory on hand because when inventory levels are kept low while maintaining strong sales performance, it suggests efficient management and customer demand is being met effectively.

Less inventory can contribute to a higher turnover rate as it indicates that the merchandise being offered is appealing to customers and selling well, rather than being stagnant on the shelves. This approach focuses on having just enough stock to meet demand without overstocking, which can tie up cash flow and lead to markdowns.

In contrast, increased inventory levels would typically lead to a slower turnover rate since it suggests that items are not selling as quickly, leading to excess stock. High discount rates might influence turnover but often indicate that products are struggling to sell at their original price, which doesn’t directly equate to a healthy turnover rate. Limited product offerings can also present challenges, as having fewer choices may not meet customer preferences, further impacting turnover negatively. Thus, maintaining less inventory while ensuring high sales can directly lead to a favorable turnover rate.