Omnichannel

Excess stock a challenge for half of U.S. retailers

Adobe Stock

February 6, 2023

Half of U.S. retailers are grappling with excess stock just as the brands are dealing with the annual wave of product returns, with 27% writing off excess stock as a loss in 2022.

That's a prime finding of a survey released by Inventory Planner that polled 500 U.S. retailers.

"Excess stock is a huge issue for U.S. merchants at this time of year. The key to avoiding inventory waste is by forward planning and having rapid response software which allows retailers to pivot quickly to fill order gaps and ditch items which are not selling," Sara Arthrell, CMO at Inventory Planner, said in a press release on the survey findings.

The average U.S. small store is sitting on $48,000 of excess stock — equivalent to 22% of their overall inventory, according to the data.

More than half (53%) reported "dangerous ramifications" if they failed to sell excess stock and 58% said they may be left with no choice but to liquidate their superfluous goods.

The survey found one in six retail brands admitted that they find it practically impossible to know how much stock they will need in coming months. And more than a quarter (27%) don't know how to calculate excess stock.

More than half, 53%, plan to offer even more discounting to try to shift the unwanted products.