What is Slow-Moving Inventory in Retail? Explained

Slow-Moving Inventory in the retail sector describes products that experience a lower-than-expected rate of sales or turnover. These items remain on shelves for an extended period, tying up valuable resources and potentially leading to increased carrying costs and obsolescence. Retailers actively monitor inventory turnover rates to identify slow-moving items and implement strategies such as discounts, promotions, or repositioning within the store. Efficient management of slow-moving inventory is crucial for maintaining a healthy cash flow, minimizing storage costs, and ensuring that shelf space is optimized for products with higher demand.