With a structured, strategic approach, excess stock is an opportunity to generate new revenue.
A strategic approach to stock has never been more important for today’s fashion retailers. Businesses need a clear plan when it comes to managing their inventory and remaining in the strongest possible position for success – particularly as the industry’s best operators try to move away from offering heavy discounts in their own stores or on ecommerce platforms.
Constantly offering lower prices through own sales channels can train a retailer’s regular shoppers, who should be among their most valuable customers, to hold off on making a purchase until the price has been significantly reduced. However, all retailers, no matter how carefully they plan, will be left with some excess stock and the question of what is best to do with it.
If they don’t plan ahead, unsold stock can become a problem, tying up revenue, eating up valuable storage space and taking up manpower at a time when the main focus should be on new product and the season ahead.
But with a more structured approach, excess stock can become an opportunity, rather than a headache.
There are many options retailers can explore, from designer outlet centres focusing on customer experiences to sleek off-price websites. Whatever the approach, retailers need to consider how to manage excess stock before it becomes a problem, and turn it into a welcome source of added income.
To help fashion retailers take a strategic approach to excess stock and managing inventory, Drapers has partnered with off-price solutions platform Inturn on this in-depth report. Released fortnightly, each chapter will cover a different aspect of stock management. In the first, we explore some of the challenges retailers face around unsold product and the pitfalls to avoid.