You’re a fashion retailer.You help your customers express their unique personalities with an ever-evolving inventory. Whether you focus on local designers or big names; everyday outfits or formal wear; footwear, accessories or the whole package, you’re dedicated to your brand and the people who connect with it.
While the industry is growing—and projected to go from $1.75 trillion in 2024 to over $2.3 trillion by 2032—many retailers are feeling the pressure to keep up with changing trends and consumer expectations. Factors such as increased competition, rising operational costs and shifting consumer behaviors are making it more important than ever for fashion retailers to stay agile to attract customers and drive sales.
Beyond that, you need a high-performing and reliable retail solution that will help you take control of your inventory, provide actionable insights and enable you to create delightful customer experiences.
In this guide:
Elevate your apparel store
Manage your inventory, customers, sales channels and more with Lightspeed’s apparel inventory management software and all-in-one point of sale.
Start with the right data
Success in fashion retail isn’t just about impeccable style—it’s about smart decision-making. Understanding what drives your sales and customer engagement can help you maximize revenue, optimize staffing and fine-tune your product assortment.
Data-backed insights allow you to make informed choices rather than relying on guesswork. Which products are bringing in your top spenders? When should you put your best salespeople on the floor? Should you adjust your pricing strategy or put an item on sale?
The answers to these questions will inform decisions like staffing schedules, markdown timing, and merchandising strategies, which ultimately drive more sales.
To that end, we recommend paying attention to the following reports:
- Product performance – Identify your best-selling items and slow movers to make smarter purchasing and markdown decisions.
- Category performance – Understand which product categories drive the most revenue so you can stock and promote accordingly.
- Sales by the day and hour – Pinpoint peak shopping times to optimize staffing and promotional efforts.
- Top salespeople – Recognize your highest performers and schedule them strategically to maximize customer engagement and conversions.
- Average sales value – Track how much customers typically spend per transaction and identify opportunities to upsell or bundle products.
- Average items per sale – Measure how many products customers buy per transaction to refine cross-selling strategies and increase basket size.
Pro tip: The Lightspeed Retail dashboard gives you an at-a-glance view of these metrics, helping you assess sales trends, staff performance and inventory health in real time.
View report
Click View report under any data widget to view the relevant sales report. Any filters you’ve added in the Retail Dashboard (Date, Outlets, More filters) will be automatically applied.
And when you’re ready to drill down on a particular KPI or data point, you can generate customizable reports that provide deeper insights into specific sales patterns.
You can also take things a step further and forecast demand, ensuring you have the right inventory at the right time. Lightspeed’s retail analytics platform provides in-depth inventory tracking and data-driven order recommendations.
Simply create a report that forecasts demand—i.e., the measure of how much stock you would need for a given time period. Let’s say you want to determine how many basic T-shirts you might need for the next six weeks. You can indicate this when building your report, and Lightspeed will display how much inventory you would need for that time period.
Level up your displays and merchandising
Already have the right data? Put it to good use by optimizing your store layout and visual merchandising. When you know which products are top sellers, which categories perform best and when foot traffic peaks, you can design displays that capture attention and encourage purchases.
For example, if your sales data shows that a particular line of handbags is trending, you can move them to a prime display location near the entrance or checkout to maximize visibility. Similarly, if your reports indicate that cross-selling certain accessories with dresses leads to higher average transaction values, you can create curated outfit displays to encourage shoppers to bundle their purchases.
Of course, visual merchandising strategies will vary from one store to another. In some cases, the same retailer can have vastly different merchandising approaches across different locations.
That being said, here are general best practices to consider.
Use design theory to build your displays
Your displays are a critical part of your overall design and can easily make or break the flow of your store. Understanding key design theory will help you build displays that are eye-catching and flow well with your in-store design.
In general, less is more. When you’re living in a sales per square foot kind of world, this might sound counterintuitive. After all, your retail sales per square footage affects your store’s revenue. But the reality is that if your store design is messy or crowded, you’ll likely drive customers away.
When building your displays, keep these four design theories in mind:
Balance
Achieving balance within your in-store displays is vital in guiding your customers around and providing a cohesive shopping experience. Balance in your store can be either symmetrical or asymmetrical.
Symmetrical balance uses design elements that have the same weight, while asymmetrical uses items of different weights. While symmetrical displays can add consistency and order to your store, sometimes using asymmetrical designs can help add an interesting touch, creating more of a focal point to certain elements in your design.
Contrast
Providing contrast will bring emphasis to items or displays in your store. Ultimately you don’t want your customers to get lost in a sea of products. Having a focal point within your displays will help guide your customers’ eyes to certain products or sections.
Choosing certain color schemes can provide contrast to your displays. Using black and white, monochromatic colors or other contrasting colors can also add a pop to your displays.
White space
Not every corner or space in your store needs to be filled with displays or products. White space, aka negative space, is an important component of your store design.
White space can help highlight certain displays or products, adding a focal point within your display and reducing clutter. When used correctly, white space can give your products room to breathe.
Apply this design principle to your store’s window displays, at your point of sale and throughout your retail location.
Unity
The overarching element you need in any store is cohesion. Creating unity in all your in-store displays, decorations and designs will make your store come together visually, and help you stay on brand.
Make sure all the design elements you’re using when putting together your store make sense with your overall brand. You might find attention-grabbing props or accessories, but the most important thing to keep in mind is whether or not they fit with the story you want to tell.
Streamline your purchasing and inventory workflows
With fashion trends changing season after season (and sometimes even more often than that), it’s critical for apparel retailers to stay on top of POs and inventory management. You need to keep shelves stocked with products that sell.
Here’s how.
Connect your wholesale and POS workflows
Managing wholesale orders alongside your in-store inventory can get messy fast. Manually entering product details, updating stock levels and ensuring consistency across platforms takes time—time better spent on growing your business.
The right tools can help you bridge the gap between wholesale purchasing and retail operations, so your workflow stays seamless.
Lightspeed enables you to do just that with NuORDER PO Sync, a feature that eliminates tedious manual data entry by automatically syncing product imagery, MSRPs, sizing, color schemes and more directly into your POS.
With NuORDER PO Sync, you’ll not only speed up your purchase orders and receiving process, but you’ll also have peace of mind knowing that product details—descriptions, pricing, and inventory levels—are accurate and consistent everywhere.
Lisa Bobb, owner of Squash Blossom Boutique uses NuORDER PO Sync to streamline her purchase order workflows. Doing so allows her to create POs 80% faster.
“It used to take me about 25 minutes to do my PO data entry,” she says. “With Lightspeed and NuORDER, I can get it done within about five minutes.”
Set the right reorder points and restock levels
Late reorders throw everything off and can lead to empty shelves and frustrated customers. Relying on manual tracking often means missed opportunities to order the right merchandise.
The solution? Use a retail management platform that lets you set safety stock levels and reorder points so products can be replenished before they run out.
Lightspeed Retail has built-in reorder points and restock levels that automatically populate orders when stock is low, saving you time and ensuring you never run out of bestsellers. By setting reorder points for each product and outlet, you can proactively restock and keep sales flowing smoothly.
Leverage data in your your purchasing decisions
We’ve alluded to this earlier, but it’s worth repeating—when it comes to inventory management, data is your superpower.
If you’re using Lightspeed, keep a close eye on your Inventory Performance report so you can compare products, categories, brands, suppliers and SKUs. When you keep an eye on these metrics, you can better understand what’s selling well and what’s not moving, to help inform your purchasing strategy.
You can use this report to:
- Consider changes to your product range. Analyze which products and brands bring in customers so you can stock what sells and put less focus on items that bring in lower profits.
- Prepare for a bulk or seasonal purchase of products. Analyze the past performance of similar products to optimize your future orders.
- Plan your promotions. See where you’re overstocked to figure out which products might need a helping hand to move them on.
What can the Product Performance report tell you?
This report combines your inventory levels, sales information and some KPIs to help you discover what stock is flying off the shelves and what needs attention.
| Metric | Description |
| Closing inventory | Your inventory at the end of your selected date range. If that is today, then it equals your current stock on-hand. |
| Gross profit | The total profit you made (Revenue – Cost of goods sold = Gross profit). Sorted by most to least to see what is generating the most profit. Gross profit relies on recording product costs in Retail POS; otherwise, it will equal your revenue. |
| Items sold | The total items you sold within your selected date range. |
| Items sold per day | The average number of items sold daily in your selected date range. (Items sold / No. of days in the period). Useful for analyzing sales spikes or seasonal performance. |
| Sell-through rate | Measures how quickly inventory is selling. A high rate indicates fast-selling items that may need replenishing, while a low rate indicates items sitting too long, tying up cash. |
| Days cover | Indicates how many days it will take to sell out based on current sales rates. Helps identify overstocked or understocked items. |
| Inventory cost | The amount of cash tied up in your inventory. (Average cost x Closing inventory = Inventory cost). Useful for understanding the financial commitment to your stock. |
| Retail value | The potential revenue your inventory could make. (Full retail price of products x Closing inventory = Retail value). Helps plan promotions, insurance claims, and merchandising strategies. |
The best part? Lightspeed doesn’t just surface the right information, it makes it incredibly easy to take action on your data.
When you’re viewing your inventory reports, simply navigate to the Replenishment tab. From there, you can create a purchase order simply by selecting the products you’d like to add to your PO. Choose your supplier, add an order number and you’re good to go.
Display your local inventory online
Fact: the shopping journeys of today’s consumers aren’t linear, nor do they take place in a single channel. It’s not uncommon for someone to look up products on their mobile device or do a bit more research on their laptop before ending up in the store.
That’s why it’s a good idea for apparel retailers to make in-store inventory easily discoverable online. Doing so enables you to meet customers where they are and encourage in-store visits.
This is where Google Local Inventory comes in. With Google Local Inventory, in-store products are automatically shown on Local Listings, including Google Maps, Google Shopping, Google Assistant, See what’s in store (SWIS) on Business Profiles and in local search for free. Depending on the type of search, your products can appear in different places in the results when customers search for products near them.
Lightspeed Retail merchants are enrolled in Local Inventory. Here’s how it works:
- A Merchant Center account will be automatically created for you and linked to your Google Business Profile.
- Products and store locations from Retail POS will sync with your Merchant Account and Business Profile.
- Local Inventory will be enabled and Google will start showing your products across Local Listings.
To add products, just scan or enter them into your Retail POS product catalog as per usual. Your inventory will be automatically synced with your Business Profile and updated in Local Listings where applicable.
Conduct sales training regularly
You’ve got the right products in-store, and your displays are on point. The next step is to make sure your sales associates have the knowledge and confidence to turn lookers into buyers.
Here are some best practices to keep in mind when training your retail sales team:
- Ensure they know your catalog inside and out. Train them on product details, materials and sizing so they can confidently assist customers.
- Implement role-playing. Practice real-life sales scenarios to help associates refine their customer interactions and upselling techniques.
- Consider hiring a third-party expert. A retail sales coach can provide fresh insights and proven strategies to boost your team’s effectiveness.
- Tailor sales training based on your team’s learning styles and preferences. Use a mix of hands-on training, videos and quizzes to keep engagement high.
- Reward and incentivize your team. Motivate employees with bonuses, recognition programs or friendly sales competitions.
How do you know if your training initiatives are working? Use the sales report in Lightspeed to view metrics like products sold and revenue for each team member. This allows you to track individual performance for commission or bonus purposes, as well as identify coaching opportunities.
Implement promotions (but don’t overdo it)
Promotions and discounts can drive sales and attract new customers, but if you rely on them too often, you risk shrinking your margins. Not to mention that offering deep discounts on a regular basis could train shoppers to wait for deals instead of buying at full price.
Here’s how to be more strategic with promotions.
Run the numbers to determine the right discounts to offer
Before slashing prices, calculate how much of a discount your business can afford while still maintaining healthy margins. Consider offering smaller discounts on bestsellers and deeper discounts on slow-moving inventory.
Set spending thresholds
Instead of blanket discounts, encourage more spending by offering deals like “Spend $100, get 10% off” or “Buy 3, get 1 free.” This increases the average transaction value while still making customers feel like they’re getting a deal.
Personalize your offers
Use customer data to send targeted promotions based on past purchases, browsing behavior or loyalty status. Exclusive deals for VIP customers or birthday discounts can make offers feel special rather than expected.
Consider value-add promos instead of markdowns
Instead of discounting prices, try offering free gifts, bonus loyalty points or complimentary services like alterations. These add perceived value without cutting into profits as heavily as straight discounts.
Regardless of what type of promo you’re running, Lightspeed makes it easy to implement and manage promotions with built-in tools that streamline the process:
- Offer customizable discounts – Set percentage or dollar-off discounts for specific products or storewide promotions, whether online or in-store.
- Run one-time or recurring promotions – Schedule sales for specific dates or set up recurring promotions, like weekly happy hours or weekend specials.
- Target the right customers – Offer exclusive promotions to VIPs, loyalty members or specific customer groups using promo codes or restricted discounts.
- Sync across all sales channels – Lightspeed ensures your promotions update in real time, keeping pricing consistent across your POS and eCom store.
With Lightspeed, setting up, tracking, and adjusting promotions is simple, so you can drive sales without the hassle.
Offer easy shopping experiences—both in store and online
Selling online isn’t just a nice-to-have anymore; it’s a must for reaching more customers and staying competitive. Having an online presence opens up opportunities to get in front of your target audience, boost sales and grow your brand.
But it’s not enough to just sell online—you need to go omnichannel. Today’s consumers move fluidly between online and offline experiences, whether they’re researching online and buying in-store or picking up orders at your physical location. Seamlessly integrating your online and brick-and-mortar operations ensures consistent customer experiences, no matter how they choose to shop.
That’s where Lightspeed eCom comes in. It helps retailers sell everywhere from one centralized platform, connecting online and in-store operations effortlessly.
Leverage Instant Site – Build a professional online store in minutes with customizable templates and content blocks. Showcase your brand with a website that seamlessly integrates with social media and online marketplaces.
Add to your existing website – Connect Lightspeed eCom to your current site (like WordPress or Wix) to instantly transform it into a full-fledged online store without rebuilding from scratch.
Sell on social media platforms – Integrate your store with Facebook, Instagram and TikTok to reach customers directly on their favorite platforms and enable seamless in-app shopping experiences.
Consider Google Shopping – Automatically sync your product catalog with Google Shopping to boost visibility and attract local customers actively searching for your products.
Sell on online marketplaces – Expand your reach by listing products on Amazon, eBay and Walmart, then manage inventory seamlessly from one platform.
Turn your store into a downloadable mobile app – Use ShopApp to create a branded mobile app that keeps your store at your customers’ fingertips, enhancing loyalty and boosting repeat purchases.
Make loyalty a key part of your retail sales strategy
When it comes to increasing retail sales, it takes less work to convince loyal customers to spend more.
As such, nurturing existing relationships and incentivizing repeat business should be a top priority in your sales strategy. Building a strong loyalty program not only boosts revenue but also fosters lasting connections with your customers.
Here’s how you can make loyalty work for you:
First: reward your existing customers. If they can earn more points or dollars off their next purchase by buying more now, they’ll be tempted to spend more. If you don’t already have a loyalty program in place, implement one now and make sure your sales associates are signing customers up at checkout.
Second: entice first-time customers to return with the promise of rewards. Your existing customers already know why they love you, and they’ll appreciate the extra incentive to shop. Your new customers might need that extra push to keep you top-of-mind and come back. Try offering a sign-up bonus that will entice customers back to the store to buy more.
Third: make use of your loyalty program’s marketing tools. A good loyalty program will have tools you can use to send customers communications about promotions and personalized purchase incentives. Birthday rewards give you an annual push to bring customers back to the store, for example. And you can catch dormant customers with a promotion designed to get them back in store, giving you a chance for sales that you would have otherwise lost.
If you’re using Lightspeed Advanced Marketing, the three steps above aren’t just doable—they’re remarkably easy to implement.
Lightspeed Advanced Marketing gives you all the tools you need to build lasting customer relationships and boost sales.
- Reward loyal customers – Leverage Lightspeed’s built-in loyalty program, which allows your customers to accumulate and redeem points for every dollar they spend.
- Automate customer outreach – Create automated email sequences—such as a series of “Welcome” emails to make a great first impression and build lasting connections.
- Smart customer segmentation – Automatically segment your customers based on purchase history and brand interactions, making it simple to reward loyal shoppers and entice first-timers to come back.
- Personalized email campaigns – Set up automated emails for birthdays, sign-up bonuses and win-back campaigns with pre-built templates and a drag-and-drop builder.
- Omnichannel communication – Use SMS and email to keep customers engaged across all channels.
Bringing it all together
Running a successful apparel retail business takes more than just great products—it requires strategic decision-making, efficient workflows and a focus on customer loyalty. By leveraging data-driven insights, creating seamless omnichannel shopping experiences and building strong customer relationships through loyalty programs you can set your business up for long-term success.
Lightspeed’s comprehensive platform makes it easier to achieve your goals, giving you the tools you need to grow your brand and keep customers coming back for more.
Watch a demo and discover how Lightspeed can help your fashion business thrive.