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Velocity Analysis
Definition
The evaluation of how quickly a product sells over a given period of time, typically at the store or SKU level, used to assess product performance, demand, and efficiency of distribution.
How It's Calculated
Velocity = Units Sold ÷ Time Period (often normalized per store, e.g., units per store per week)
Example
A snack brand sells 1,000 units across 50 stores in one week. Its velocity is 20 units per store per week, helping the brand compare performance across retailers and identify high- and low-performing locations.
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