Do Accurate Inventory Records Really Impact My Business?
Posted on December 6, 2023
When it comes to retail, the question isn’t just about the necessity of stock counting; it’s about its profound impact on sales. A recent comprehensive study, “Inventory Inaccuracy in Retailing: Does it Matter?” conducted by prominent academics, provides illuminating insights.
The study discovered:
- Widespread Inaccuracy: Among 1 million SKUs across 100 stores, 60% were found inaccurate.
- Sales Boost: Correcting these inaccuracies led to a 4% to 8% increase in sales, with fast-moving, high-discrepancy items seeing up to 14% sales increase.
- Boosted Sales: More frequent counts can significantly lift sales, especially for fast-moving items.
- Strategic Inventory Management: The timing and frequency of stock counts become a key strategic decision.