Dead stock is silently eating your margin — here is the fix

Ageing reports, reorder points and ABC analysis — a simple playbook any retailer can run monthly.

Every unit that sits on a shelf for six months costs you storage, capital and, eventually, a discount. Most retailers do not know which items those are.

Run an ageing report

Group stock by days since the last sale: 0–30, 31–90, 91–180 and 180+. Anything in the last bucket needs a decision this month.

Set reorder points

Base reorder points on real sales velocity, not habit. The system should tell you what to buy; you decide how much.

Use ABC analysis

• A items — the 20% of products that bring 80% of revenue. Never let them run out.
• B items — steady sellers. Review monthly.
• C items — the long tail. Order less, bundle more.

Key takeaways

Look at stock age monthly, buy from data instead of memory, and protect your A items above everything else.