Retail Shrinkage – Are You Prepared for the Holidays?

Combating the retail downturn is an ongoing challenge for many businesses, especially with the holidays approaching. If you manage inventory, you know that deflation can happen for a number of reasons. Managing it is an important part of protecting your earnings. StockIQ can help combat many of the challenges associated with a retail downturn and make it easier for you to keep track of your inventory.

What is retail deflation?

A retail downturn includes any type of loss that occurs due to a loss of money or inventory because inventory that should be on hand is not or has been damaged in a way that prevents it from being sold. Retail deflation may occur more often in companies that keep a large amount of stock on hand. On average, companies lose between 1.4% to 2% shrinking their sales. For businesses large and small, this can mean a serious challenge to your profit margins.

How does retail deflation happen?

Retail deflation can occur for a number of reasons.

theft

When you think of the retail downturn, theft may be the first challenge that comes to mind. If you stock expensive items, especially a large number of them, theft can cause serious problems for your business, especially if you don’t have a system in place that helps you keep track of the products you sell. External theft or internal theft and internal theft, which occurs when a member of your team commits an act of theft that results in the loss of the company, can present significant challenges.

ruin

When your inventory is damaged, it may be impossible to sell it. Damaged items may include merchandise that experienced actual physical damage or items such as groceries that were damaged while waiting to be purchased. Unfortunately, the damage can cut into your overall profit if you don’t have an inventory management system that helps prevent spoiled merchandise.

bookkeeping errors

Bookkeeping errors can lead to serious challenges when it comes to retail downturns. Your inventory tracking system should keep track of the items you have already stocked and the items you need to purchase. If you fail to properly keep track of the inventory you have in your storage area or on your shelves, you may end up buying more products you don’t need by mistake – and that could mean you have to sell them at a discount to get back some of the money you’ve already spent . Furthermore, bookkeeping errors can lead to a variety of other challenges, including failing to keep up with minimal orders to maintain relationships with your suppliers.

Anti deflation retail

Managing your inventory is an important part of avoiding an overall downturn and ensuring that you can meet your goals. With StockIQ, you can improve files Inventory Management and combating retail downturn.

Know what you have on the shelves

With StockIQ, you can keep track of files What do you have on the shelves At any time – with increased accuracy. Not only can this help you keep stock you already have against the stock you need to order, but it can also help you identify any potential problems before they become more serious. For example, if you notice that items are starting to disappear or you have less inventory than your system claims, this may indicate that you have a thief on your hands – and that you need to address the issue quickly so that you do not continue to lose valuable inventory.

Balance your stock

Keeping up to date with where your inventory is located can be critical to ensuring that you have the supplies your customers need. Sometimes, that may mean moving inventory from one place to another to keep up with customer demand. Other times, you may need to bring in more inventory in response to increased customer demand. With StockIQ, you can easily balance your inventory and keep up with where your items are – helping you avoid a lot of damage to your products.

Keeping up with when you last ordered – and when you need to move inventory

Sometimes, you may need to keep up with the date by which your inventory should be sold, especially if you deal in perishable goods. The more perishable goods, like food, the more important it is to keep up with deadlines for moving that stockpile. If you have inventory nearing a sale date, you may need to discount some of these products or use them as part of a promotion – and StockIQ can help alert you to potential expiration dates or sale dates ahead of time. Moreover, it can help you manage your total inventory more effectively so that you damage fewer items.

Track your container loading

Damage during shipping can cause major retail shrinkage. Unloaded containers and trucks may be more likely to damage your inventory, as items may have a greater likelihood of wandering in the back of a truck or on a ship. However, with StockIQ, you can keep up with your container loading practices, whether you’re bringing in items from overseas or filling up a truck. Not only can we help make sure you’re not shipped by air, but we can also provide you with the tools to ensure you can track container loading practices and establish best practices to help keep your items safe.

Get ready for the holidays and big events

During the holiday seasons or certain times of the year, you may need to have more inventory on hand to handle customer orders. With StockIQ, you can easily keep up with your customers’ demand, adjust your orders accordingly, and quickly return to your regular order schedule, which means you’re less likely to have to get rid of excess inventory or lose it due to damage because it’s been in the warehouse for so long. You may also want to make adjustments due to leisurely increase Or other major events – and we make that simple.

Keeping up with inventory management is an ongoing challenge. StockIQ can help. call us Today to find out more about our platforms and how we can help you reduce the retail downturn.

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