What is Obsolescence in Retail? Explained

Obsolescence in the retail industry describes the state of being outdated or no longer in demand. This can apply to products, technologies, or business practices that have become obsolete due to advancements, changing consumer preferences, or the introduction of newer alternatives. Retailers must manage the risk of obsolescence in their inventory by monitoring trends, staying updated on market developments, and adapting their product offerings to align with evolving customer needs. Failure to address obsolescence risks can lead to excess inventory, financial losses, and a negative impact on a retailer's competitiveness in the market.