Retail shelf space has high value, and any inventory that is taking up space for too long should be cleared away to make room for products that sell. What to do with dead inventory is a concern for most retailers. Fortunately, there are ways to deal with it.
Properly identify dead inventory. Not all slow-moving items should be eliminated; there are a few products that are not frequent sellers, but are necessary for completing some projects (typically referred to as “Project Killers”). Removing these items from the store could essentially cost more money through lost project sales.
Mark deep discounts. Special sales and promotional events that offer deeply discounted items at or below cost can not only help move these dead products off store shelves, but can bring in consumers looking to purchase other items.
Donate dead inventory. Donating to charity is another way retailers can eliminate dead inventory. Organizations such as Habitat for Humanity’s Restore, the Fuller Center and many disaster relief organizations accept donations of products for their own use or for resale to create cash flow for charitable work.
Read about one retailer who had a positive experience donating dead inventory to charity in this Hardware Retailing article.