The retail industry is one of the fastest growing industries in the world. In retail there is only one type of inventory, finished products of different companies. Selling products at a fixed margin is the core activity of any retail business, so the retailers’ revenue is dependent on the inventory performance. Inventory performance analysis will indicate how well an organization’s inventory is being managed. Performance of inventory is based on several variables such as gross margin, sales, size of the firm, growth rate, location of the retail firm, managerial efficiency, inventory turnover, macroeconomic factors etc. Inventory performance is also influenced by certain other factors such as the working capital and supply chain system. Hence inventory management assumes considerable significance in retail sector. This book is throws some light on this issues.