Managing inventory is one of the biggest challenges retailers face, especially when they’ve ordered too much. Excess stock ties up cash, takes up valuable space, and can lead to heavy markdowns.
At the same time, keeping fresh products on the shelves is crucial for keeping customers engaged and staying competitive. So, how can retailers bring in new inventory without making their overstock problem worse? Here are some practical strategies.
1. Make Room by Moving Existing Inventory
Before adding anything new, retailers need to free up space and cash.
Discounts & Promotions: Running clearance sales, bundle deals, or limited-time discounts can help clear out old inventory.
Sell to Liquidators: Off-price retailers, wholesalers, or discount platforms can take surplus stock off your hands and free up room for new items.
Return to Vendors (RTV): If your suppliers allow it, send back slow-moving items for credit or exchange. Negotiating flexible return policies upfront can help avoid future overstock. Talk to your inventory analyst about this strategy since you do not want to compromise your vendor relationships.
2. Buy Smarter & Adjust Inventory Strategies
To keep from getting overbought again, take a more strategic approach to purchasing.
Rework Your Buying Budget: Shift funds from future restocks of slow-moving items to exciting new products that have more sales potential. Your Blacks analyst can help you reassign open-to-buy.
Test in Small Batches: Instead of committing to large orders, start with smaller quantities up-front to gauge customer interest before going all in.
Use Drop-Shipping or Consignment: Some vendors offer drop-shipping or consignment options, so you don’t have to buy new stock upfront.
3. Market & Merchandise Smarter
Getting creative with sales and marketing can help move inventory while making room for new arrivals.
Rearrange Your Displays: Sometimes, simply reorganizing store layouts or adjusting online product placements can draw attention to overlooked inventory.
For example, if you have limited sizes, displaying by size rather than by style can help steer customers to the sizes that are available to them across different selections of the same type of product.
Leverage Loyalty Programs: Offer early access or exclusive discounts to your most loyal customers to encourage faster sell-through.
4. Work Closely with Vendors
Building strong supplier relationships can offer more flexibility when it comes to managing inventory.
Negotiate Better Payment Terms: Extending payment deadlines can ease cash flow, giving you time to sell old stock while bringing in new products.
Trade in Old Stock: Some vendors will let you exchange slow-moving inventory for something new that might perform better.
Collaborate on Marketing: Work with suppliers on joint promotions to create more buzz around both your current stock and new arrivals.
Wrapping It Up
Even if you’re overbought, introducing new products is possible with the right approach. By clearing out old stock, refining your buying strategy, leveraging smart marketing, and working with vendors, you can keep your store fresh and engaging—without putting your business at risk.
A professional inventory planner can help you navigate these strategies and prevent over-buying.
