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

Blocking

Also called facing, zoning or fronting, a retail merchandizing concept where all products of the same

Basket Size

The amount that a customer spends in a retail store in single transaction.