Every shop has stock that is quietly costing it money. Stock that arrived with good intentions, sat through two seasons, and now occupies space that could be earning. Owners hold on because writing it off feels like admitting a mistake.
Here is the harder truth. The mistake was made at the point of purchase. Holding the stock does not undo it. It adds to it, because that space, that shelf and that shopper attention have a cost every single day.
A workable approach is unemotional and quick.
First, define dead. Pick a rule and apply it: no sales in ninety days for impulse and gift lines, no sales in six months for slower categories, longer for genuine staples. The rule matters less than having one.
Second, run the list from your POS. Sort by value tied up, not by unit count. You are looking for where the money is, not where the clutter is.
Third, decide in three buckets. Return or claim credit where a supplier arrangement allows it. Clear at whatever price moves it, in a location shoppers actually walk past. Or destroy and write off, which is sometimes the cheapest option once you count handling time.
Fourth, and most important, ask why each line is on the list. Was it a fair deal that did not suit your shoppers? A minimum order you did not need? A trend bought late? A range you never gave enough space to succeed? Those answers are worth more than the cash you recover, because they change what you buy next.
Clearance placement decides how fast it moves. Buried in a back corner, dead stock stays dead. Near the counter or at the front, with clear pricing and a single simple message, it moves within weeks.
Then protect the space you win back. Give it to a category with proven turn and healthy gross profit, and measure the result. Space earned should be space that earns.
We do stock and space productivity analysis for retailers, showing turnover and gross profit by share of selling space. It is often confronting and always useful. Email help@newsxpress.com.au if you would like a look at your own numbers.
