Based on our work with 3,500 retail businesses across a range of specialty retail channels, here are our five top ways any small business retail store can reduce dead stock in their business. These top ideas are all about ensuring the problem does not occur in the first place.
- Track everything that comes in and that you sell. Good data drives good business decisions.
- Order what sells. Use a re-order report from your POS software to order replenishment stock. And, yes, good POS software allows you to add to this for new items or extra stock you are certain you need.
- Set a budget. Use your software to control stock weight so you do not over order without thought.
- Track stock turn. Stock turn is the best indicator of efficiency of stock. Focus more on your best performers.
- Centralise buying. Ensure buying for the business is done by limited people who do use business data and who operate to a strict budget.
There are more ideas and tips on reducing dead stock. These suggestions are the best-practice starting point.
