Footwear businesses: size runs, cartons and broken sets

How footwear is supplied

Footwear comes from large brands with their own distributors, from manufacturing clusters producing for regional brands and private labels, and from importers. Distributors and wholesalers supply multi-brand footwear stores, general stores in small towns, and online sellers. Brands may also run their own exclusive outlets or franchise stores, which follow brand-defined systems.

Wholesale orders are placed in sets or cartons, where one carton holds an assortment of sizes in a standard ratio, for example sizes 6 to 10 with more pairs in the middle sizes. Retailers buy by the set, but customers buy by the pair.

Size runs and the item master

Each article (style) comes in several colours and sizes. Some businesses keep one item per article-colour-size; others keep one item per article-colour and track sizes informally. The first gives accurate size-wise stock at the cost of a long item list; the second is simpler but hides broken size runs until a customer asks for size 9 and there is none.

Whichever you choose, sets can be handled with a stock journal that converts a set into pairs when it is opened. See stock groups and categories for organising articles by brand and type.

Broken sizes and dead stock

The middle sizes sell first. After a few weeks, the shelf holds size 5 and size 11 of a style nobody else wants. These broken runs are the main source of dead stock in footwear. Watch them closely:

• Check size-wise stock of each style every month during the season.
• Reorder middle sizes only, if the supplier allows, instead of full sets.
• Move broken runs to a sale rack or another branch where those sizes sell.
• Agree with suppliers in advance whether size exchanges are allowed.

The guide on inventory turnover and dead stock shows how to spot slow styles early.

Seasons and occasions

Demand changes with the weather and the calendar: sandals and slippers in summer, closed shoes and boots in winter, rain footwear before the monsoon, school shoes at the start of the academic year, and festive and wedding footwear in those seasons. Sports shoes sell more around school sports seasons and the new year. Plan purchases for each window and be cautious with fashion styles, which have the shortest life.

Store counter routine

In a footwear store, most stock errors happen at the counter and in the trial area. A customer tries three sizes, takes one, and the other two boxes go back to the wrong shelf or with the wrong pair inside. Exchanges are done without a bill. A few habits help: keep one pair of each style on display and the rest boxed by size, label every box with the article, colour and size, scan the label on the box at billing rather than typing the article number, and record every exchange as a return and a fresh sale so stock stays right. At closing, put mismatched pairs aside and resolve them the next morning instead of leaving them in the stockroom. When the monthly count is done by scanning labels, it takes a fraction of the time of a manual count, and broken size runs show up immediately.

Retailer credit and returns

Wholesalers usually give retailers 30 to 60 days, and returns of defective pairs are common. Manufacturing defects such as sole separation are generally returned to the supplier, who may replace or credit them. Record each return with a credit note against the original bill, and keep defective pairs separate until the supplier settles. Unsold seasonal returns are a commercial decision; if you accept them, set the rules in advance. See returns and replacements.

GST points

GST on footwear has in the past depended on the price per pair, with different rates above and below a value threshold, and rates have been revised. Check the current rules on the GST portal for each price band, and remember that discounts can change the value per pair. Accessories such as socks, polish and insoles are separate items with their own HSN codes. This is general information, not tax advice.

Cashflow OS for footwear businesses

Cashflow OS syncs your TallyPrime books. Barcodes and labels can be printed per item or per piece, so each pair can carry its own label, and staff scan with the phone camera. Item photos and an online catalogue show your articles to retailers, who enquire on WhatsApp. For distributors, price lists by retailer type, field force tools and the staff app help salespeople book orders that post to Tally as sales orders. Retailer outstanding is visible on the phone. See barcodes and labels.