GlossaryMerchandising

What is Inventory Aging?

The success of any retail business depends on many factors, but the most crucial one is the right inventory management.

Published: May 27, 2023 8:25 AM

By Jeanel Alvarado

GlossaryMerchandising

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GlossaryMerchandising

What is Inventory Aging?

The success of any retail business depends on many factors, but the most crucial one is the right inventory management. Location, marketing, decor, music, and displays all matter, but the heart of your business remains what you choose to put in it. In this guide, we will discuss the best practices for managing inventory to increase profits, keep the right goods in stock, and run an all-around better business. Today, we will share some inventory aging basics to get you up to speed, explain the key metrics for maintaining optimal stock levels, and give you practical tips to keep your sales high and inventory costs low. Let’s get into it!

What is Aging Inventory in Retail? Inventory aging is any stock that’s still hanging out on your shelves without selling fast or at its full market price. Unfortunately, the longer you leave an inventory aging problem, the worse it gets.

There are levels to aging inventory: Inventory maturation is a natural and expected part of selling physical goods. Issues only arise when inventory sticks around for too long, which is usually around 120+ days after the stock arrives in your warehouse. Inventory age can guide your promotions.

When the stock has been in your warehouse for 120+ days, it’s a warning signal you need to take action. You can trigger special sales during this period to recoup your investment and avoid long-term storage fees.

Furthermore, tracking inventory aging helps pinpoint overstocked products, so you can find out why shoppers aren’t buying them, then work to fix the problem and improve conversion rates. Inventory aging data allows you to make informed choices about the next steps in your store…

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What is Inventory Aging?

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Unlock the rest of this story

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