Cover is a KPI used to measure of the length of time stock on hand will last based on prior sales. Cover is calculated by dividing current closing stock by actualised sales. And is usually expressed in weeks. Common synonyms include: stock cover, weeks cover, and branch/warehouse cover.
Why Cover Matters
Cover is an indicators of inventory health and trading readiness. It helps teams understand:
- How long stock will last before running out
- Whether buying decisions matched demand
- Where overstock or understock risks exist
- How to plan promotions or replenishment
- How to protect margin by avoiding unnecessary markdowns
Common Use Cases
- Allocation planning: ensuring stock levels match demand where items are selling the quickest/lowest
- Promotion planning: using offers to reduce excess cover
- Forecasting: validating whether demand assumptions were accurate
- Trading decisions: prioritising categories with low or high cover
Related Terms
- Forward Cover
- Sell‑Through
- Demand
- Inventory Turnover
- Replenishment
- Markdown Spend
