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The cash frozen on your shelves
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The cash frozen on your shelves

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Retail June 27, 20262 min read

The cash frozen on your shelves

Dead stock does not look like a problem. It looks like inventory. But every shelf of not-quite-selling product is cash you already spent, waiting — and most retailers only find out how much at the annual stocktake. Here is how to spot it in a week instead.

Jaswant Singh

Jaswant Singh

Co-Founder & CEO, Kauzio

Walk any shop floor and you can point at the bestsellers. Nobody can point at the dead stock, because dead stock is invisible by design: it sits there looking like a shop. Full shelves feel healthy. But a fifth of most independent retailers’ inventory has not sold a unit in ninety days, and every one of those units is cash you already spent — cash that could be a reorder of what actually sells.

Why it stays invisible

Three reasons. Sales reports show what sells — dead stock, by definition, never appears in them. The stocktake that would catch it happens once a year, usually at the worst possible time. And there is a psychological tax: marking stock down means admitting the buy was wrong, so the boxes wait for a someday that never comes.

Meanwhile the cost compounds quietly: the frozen cash, the shelf space a faster line deserves, and the slow drift of a shop that looks a little more tired each season.

Spot it in a week

In Pulse, the Products and Stock view crosses your inventory against actual sales velocity per product. The question is brutal and simple: at the rate this sells, how many days of it do you hold? Bestsellers run out in weeks. Dead stock holds years. The moment stock and sales share one screen, the frozen cash gets a number — and a name, and a shelf.

What to do with it

The playbook is short. Bundle it with a bestseller before discounting it alone. If you discount, do it once and deep — three polite five-percent attempts train customers to wait and recover nothing. Whatever the route, set a deadline: cash by a date, or donate it and take the shelf back. The worst option is the default one — another year of storage.

And close the loop: dead stock is a purchasing lesson wearing a dust jacket. Kauzio ties what you marked down this year to what you are about to over-order next season — because the cheapest dead stock is the box you never buy.

#retail#inventory#dead stock

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