What Is Dead Stock?
Deadstock, also known as dead inventory or obsolete inventory, refers to items that aren’t expected to sell. Deadstock can negatively affect a business’s bottom line.
Don’t confuse “deadstock” with “deadstock,” a niche term used by some consumers, such as sneaker enthusiasts. Deadstock usually refers to discontinued lines of unworn sneakers or vintage items like clothing and fabric that are no longer available on the market but still have their original tags. Unlike deadstock, deadstock items often sell at a premium price.
Key Takeaways
- Dead stock can be a major expense that reduces profitability by stalling revenue, increasing carrying costs and taking up valuable warehouse space.
- Businesses can accumulate dead stock for many reasons, including poor inventory management, falling customer demand and changing economic conditions.
- Strategies to manage or repurpose dead stock include discounting, bundling and using alternative sales channels.
- Inventory management software can help businesses prevent dead stock by better matching inventory levels to demand.
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