What is Perpetual Inventory in Retail? Explained

Perpetual inventory in retail involves a continuous and real-time method of monitoring and updating stock levels. Unlike periodic inventory systems that rely on occasional manual counts, perpetual inventory systems leverage technology, such as barcoding and point-of-sale systems, to automatically track and record changes in inventory as sales and purchases occur. This approach provides immediate and accurate insights into current stock levels, enhancing inventory management, reducing the risk of stockouts, and improving overall operational efficiency. Perpetual inventory is a critical tool for maintaining precise and up-to-date records of available merchandise.