What is Dead Stock in Retail? Explained

Dead stock in retail pertains to unsold inventory that lingers on shelves or in storage for an extended period. These are products that haven't found buyers, often due to factors like changing trends, obsolescence, or oversupply. Managing dead stock is crucial for retailers as it ties up valuable resources without generating revenue. Retailers employ various strategies, such as discounts, promotions, or liquidation, to mitigate the impact of dead stock and optimize inventory turnover. Effective inventory management practices help maintain a healthy balance, ensuring that products align with market demands and contribute to the overall profitability of the retail operation.