Cost management is the systematic process of controlling and optimizing expenses associated with running a retail business. It involves various strategies and techniques aimed at reducing costs while maintaining or improving profitability. This includes analyzing and monitoring expenditures related to inventory, labor, operations, marketing, and overhead.
Effective cost management involves identifying areas of inefficiency, negotiating favorable vendor contracts, implementing cost-saving measures, and eliminating unnecessary expenses.
It also encompasses accurate budgeting, forecasting, and tracking of financial performance. By actively managing costs, retail businesses can enhance their competitive edge, increase their profit margins, and ensure long-term sustainability in a dynamic and challenging market environment.