Improving Inventory and Sales with Power BI for a US Liquor Store

Our client, a Liquor Store retail business based out of the US, was struggling with their operational efficiency, making it critical to optimize inventory, forecast demand accurately, and implement data-driven pricing strategies. Overstocked inventory, capital stuck in unsold inventory, inaccurate sales forecasting, and random discounting were directly impacting their cash flow and profitability. They engaged us to develop a dynamic dashboard to drive smarter decisions and boost operational efficiency.

Customer Challenges

The client faced multiple roadblocks in managing liquor store inventory efficiently and aligning sales strategies for profitability. Below are the key issues that impacted operations and financial performance:

Excess Inventory Tying Up Capital

Overstocking resulted in blocked working capital, higher storage costs, and lack of visibility on slow-moving products.

Root Cause Analysis for Sales and Profit Fluctuations

Inaccurate Sales Forecasting

Manual forecasting resulted in mismatches between supply and demand, causing frequent stockouts and missed sales opportunities.

Ineffective Discount Strategies

Discounts were applied without considering price elasticity, resulting in revenue loss instead of volume gains.

Growing Cost of Frozen Capital

Prolonged inventory holding increased interest expenses on credit purchases, impacting overall profit margins.

Lack of Visibility into SKU and Category Performance

The lack of detailed analysis on SKU and category performance hindered identification of profitable products and high-potential categories, limiting margin growth and assortment optimization.

Solutions

To address the client’s operational challenges, NeenOpal implemented a comprehensive Power BI dashboard which included advanced inventory management, price elasticity modeling, and real-time financial insights, enabling the business to optimize stock levels, sales forecasting, and profitability.

Instant Alerts for Critical Sales Changes

Inventory Classification and Optimization

We classified inventory into fast, slow, and normal movers based on Days on Hand and unit movement trends. This helped the client streamline stock management and make informed decisions about when to reorder products. Liquor store inventory optimization became more efficient with this approach, leading to reduced holding costs.

Sales Forecasting and Discount Optimization

By leveraging historical sales data and price elasticity modeling, we created an accurate sales forecasting model. Additionally, we used "what-if" analysis to determine the most effective discount strategies for different product categories.

Frozen Capital Management

We developed a Frozen Capital analysis dashboard to identify slow-moving products and their impact on working capital. This allowed the client to manage their inventory more efficiently and reduce unnecessary interest expenses.

SKU and Category-Level Performance Analysis

We conducted a detailed analysis of the Top 50 SKUs to benchmark their performance against their respective product categories. A similar Category analysis was carried out which included a comparison of category margins to overall store margins to assess performance. Combined with price elasticity modeling, this enabled informed pricing decisions and helped optimize assortment without impacting sales volume.

Why choose NeenOpal?

With deep expertise in retail analytics and Power BI, NeenOpal delivers tailored, actionable solutions that drive measurable business outcomes. Our data-driven approach, combined with domain knowledge, ensures faster implementation, smarter decisions, and long-term value for clients.

Conclusion

By leveraging our Power BI solution, the client gained full control over liquor store inventory management, sales forecasting, and cost optimization. The streamlined processes resulted in improved profitability, reduced interest expenses, and more efficient decision-making. The client is now better equipped to thrive in a competitive market.

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