Maximizing GMROI through Digital Transformation
Maximizing GMROI through Digital Transformation Eng. Mohamed Yasser Maximizing GMROI through Digital Transformation In the ever-evolving retail landscape, achieving optimal profitability is crucial for the success of any business. One essential metric that retailers focus on to assess their performance is the Gross Margin Return on Investment (GMROI). GMROI is a key financial indicator that measures the profitability of inventory investments, and it is calculated using the equation: GMROI = GM% * inventory turnover * 100 In this blog post, we will explore the various factors that influence GMROI and discuss the role of digital transformation in enhancing each factor's impact. Why Retailers Strive to Maximize GMROI Maximizing GMROI is a primary objective for retailers due to its direct correlation with profitability. By increasing GMROI, retailers can effectively optimiz boost overall sales, and generate higher returns. By understanding the factors that influen