What is FIFO (First In, First Out) in Retail? Explained

FIFO, or First In, First Out, is a inventory management method in retail where products are sold or used in the order they are received. This approach ensures that older stock is used or sold first, minimizing the risk of products reaching their expiration date or becoming obsolete. In the context of retail, FIFO is particularly important for perishable goods and helps maintain inventory freshness while reducing waste.