On the list of things that retailers should avoid is having too much inventory. In addition to occupying valuable backroom or shelf space, excess stock can tie up cash and prevent you from reinvesting in your company or purchasing needed items.
That is why paying attention to your sales and inventory statistics is crucial. You must monitor how things move to make the best marketing and purchasing choices. Keeping track of inventory counts also helps you keep a handle on your product, preventing your store from having too much stock.
Nevertheless, issues with excess inventory can occasionally arise due to factors beyond your control. Perhaps the trend abruptly changed, or your demand projections didn’t work as well as you had hoped. In any case, don’t worry. You may take several actions to liquidate any excess items you see in your store.
1. Resell, Relaunch
When something isn’t selling, it might not always be the product’s fault. The problem can occasionally be with how you position or market the product. Try to revamp your marketing and merchandising efforts regarding your slow-moving or out-of-date inventory.
Relocating them in your store is one option you have. Put them somewhere else in the store, or rearrange the shelves where they are. Retail management expert Judy Crockett said this could be an excellent inventory update method.
She suggests that she freshen the display, rearrange the items, make new, colorful signs, and swap out outdated price tags. “Make it look new and fresh for your staff and customers-customers who may not even have seen the items in the previous location.”
Flourish Boutique’s Vanessa Cooreman Smith, a fashion retailer, admits that they occasionally “remarket” sluggish-moving items in their stores. We’ll re-photograph an item for the website, write a blog post explaining the benefits and uses of the product, or arrange it differently in our physical shop, according to the company.
While remarketing a product can be profitable, you might have to invest financially. Vanessa advises retailers to use caution when putting such strategies into practice. It “can increase your cost in the item, so be careful,” she warns. However, if your current marketing or image efforts aren’t doing an item justice and you believe it could be a good seller, this can be a good strategy.
2. Think Of Liquidation Firms
Alternatively, you may consign surplus inventory products to businesses that focus on removing inventory from merchants’ hands by using a liquidation company.
Please remember that these businesses might cherry-pick products and purchase them at much lower prices, so using this strategy will probably not result in any profits. However, you’ll at least be able to free up room and money for your company.
3. Increase The Amount Of Exposure Given To Your Slow-Movers To Sell Out Of Stock
Christine Guillot, a retail specialist, provided some helpful advice. She said double or triple exposing your products is good if you have slow-moving inventory. This involves adding more locations for those things in your store. For instance, you may put the same things at the back of your business and then show them near the front.
To determine which parts of your store customers frequent, pay close attention to your retail analytics and the traffic flow in the area. When determining where to put your slow movers, use that knowledge. You could also look for opportunities for cross-selling. Displaying a slow-moving product alongside a complementary or matching item may be helpful.
4. Strategic Ways To Discount Products
If remarketing or remerchandising fails, you might want to cut the cost of your excess goods. According to Kat Rosati, brand manager at Apparel Booster, retailers are encouraged to lower prices in specific increments. “Start with something small, say 30%, and then continue to discount,” she advises.
Organizing a sale event is another way to intensify this strategy. Why not hold a flash sale to give your customers a sense of urgency? Another option is to hold a store-wide event and try to gather crowds if you have a lot of inventory that needs to be sold.
5. Combine Them Up
Another common tactic for businesses is bundling. A study conducted by Software Advice, a research firm for web POS systems, found that it is the second most popular pricing strategy for retailers across all industries (behind discounting). 90% of responders to their study claimed to have used it in their companies.
If combining specific things and selling them for a little less than if purchased separately makes sense for your store, give it some thought. This will enable you to transfer goods without significantly reducing your profits.
6. Offer Them As Gifts Or Rewards
Low-cost items respond best to this strategy. Use a product as a freebie or incentive instead of trying to sell it. For instance, you could use it as a “bribe” to entice customers to join your mailing list or boost the value of their basket.
If Flourish Boutique discovers that a particular product is a “dud” but doesn’t have a high price tag, they may use this strategy in their stores. We’ll offer it as a gift or freebie in event goody bags, as payment for anyone joining our email or SMS service list, etc. Vanessa claims that by doing this, they are essentially using the product’s cost as a marketing expense.
7. Get Your Staff Involved In The Fun
Remember that more than just the product occasionally needs to be spruced up. You might also need to change how your staff members act in some circumstances. Owing to the product not selling well, it’s possible that your team does not like it and does not want to market it. Watch out for this behavior, Judy adds.
When this occurs, please speak with your coworkers, provide them with new training, or discover other effective ways to motivate and increase morale. Chris advises doing the same thing by aggressively encouraging your employees to promote your sluggish items, turning them into “mobile merchandising statements” for you.
8. Examine Your Options For A Return Or Exchange
“Whenever possible, return the product to your vendor in exchange for credit or new merchandise,” Judy continues. “Make a case for returning it if they sold you a puppy or the item was inappropriate for your market. Just ensure you’re preserving the goods in brand-new packaging and undamaged condition. Your supplier desires to keep you as a client. Make the most of that connection.
Perhaps this post has shown you that you don’t need to worry about the excess stock. Excess inventory can give your company chances for sales, client involvement, and tax savings when handled appropriately.