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The Cost of Dead Inventory - Retails Dirty LIttle Secret

Accurate Forecasting and replenishment is essential…

Among the many problems facing today's retail market, unsold stock might be one of its biggest handicaps, argues Haley Smith Recer.

NEW YORK, United States — Check any recent retail headline and it’s hard to miss the headwinds the industry has been experiencing. A warm winter, consumers focusing more on experiences than their closets, and the ever elusive "omnichannel strategy" are just a few reasons why retailer’s top lines have been struggling.

These misses translate to exponentially weaker bottom lines as retailers and fashion houses struggle to adapt their organisations quickly enough to make up for lower sales. We’re all aware of the layoffs permeating retail headlines and of the constant promotional activities as brands try to prompt purchasing — but one plan of action that has received little, if any attention (at least publicly) is the effort to buy more responsibly up front and limit the amount of dead inventory at the end of a season.

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