Velocity Analysis

Velocity Analysis

A method of analyzing sales data to identify products with high sales velocity. Velocity analysis helps retailers and manufacturers prioritize inventory replenishment, allocate shelf space, and develop pricing and promotion strategies based on demand patterns.

Related Terms

Convenience

A small-format retail outlet that offers a limited selection of basic and immediate consumption items, such

Markdown Pricing

A pricing strategy where retailers lower the prices of products to boost sales and manage inventory