Some products move fast. Others sit — and the longer they do, the more they cost you.
Slow-moving inventory refers to products with low sales volume over a period of time — whether that’s 48 hours in a bakery or a few months on a retail shelf. It ties up capital, takes up storage space, and may become outdated or unsellable.
Outdated liquor, off-season sunscreen, and phone accessories for older models all take up warehouse space and shrink your profit margins. But the right point of sale (POS) system can help catch slow movers early so you can respond with clear action.
Learn seven ways to improve sales on low-performance inventory to free up space, recover costs, and make room for products that perform.
The first step to fixing slow moving inventory is to know what’s collecting dust. POS tools make it easy to track what’s selling, notice turnover slowdowns, and flag products taking up valuable shelf space.
Use your POS system to:
Run product-level reports to flag merchandise with low turnover rates over the last 90 to 120 days.
Sort by vendor or brand to highlight underperforming lines that may need to be rotated out.
Check seasonal trends to find stock-keeping units (SKUs) that have missed their selling window and need to be discounted or repurposed.
These insights help you separate one-off slow sellers from broader trends, giving you a focused list to work from before you start discounting or rearranging shelves.
Discounting everything at once might clear shelves, but it can also cut into revenue and miss essential insights. For a more targeted approach, start with the data already in your POS system.
Try these steps to guide pricing decisions that protect your margins:
Analyze past promotions to see which discounts led to sell-through and which products remained untouched.
Schedule markdowns to trigger only after products have sat for a set period, giving them time to sell at full price.
Build bundles that pair nonperformers with top-selling items — like mixers with popular liquors or accessories with trending apparel.
Offer volume-based deals such as “buy one, get one (BOGO) 50% off” to move inventory without slashing single-unit pricing.
These tactics help you apply discounts more intentionally and recover value from slow-moving inventory that might not sell otherwise.
Poor placement can hold back sales, even for popular products. If inventory is tucked away or sitting below eye level, give it a more prominent spot and a better chance of selling.
Try these tactics to reintroduce slow sellers:
Move merchandise to endcaps or impulse zones (high-traffic areas) to increase visibility and encourage impulse buys.
Place slow-moving products at eye level across customer sightlines so underperformers are easier to notice and grab.
Add simple signage to highlight features or bundle ideas with signs like “Pairs With…” or “Try Me With…” to catch attention.
Small changes in placement can turn overlooked products into active sellers.
Some products only sell well during specific windows, like pumpkin-flavored snacks in the fall or holiday-themed liquor gift packs. If you wait too long to promote them, they go stale.
Your POS system helps you catch patterns so you can act before stock starts to lag. Here’s how to stay ahead of the cycle:
Review last year’s sales cycles to identify slow-moving inventory and forecast demand, then plan your ordering and markdowns around those timelines.
Promote products early (like flavored wraps, lighters, or portable ashtrays in a tobacco store) before peak summer hits, so you don’t miss the seasonal rush.
Watch for short-lived surges — like phone accessories tied to viral trends in your cell phone store — and act before interest fades.
Even a few weeks of strategic pricing can move seasonal inventory before interest drops. Check your data early to take advantage of well-timed discounts.
When you know what your customers buy, you can create focused offers that feel personal. Rely on your POS system to uncover buying patterns and help you build promotions that move products without sacrificing profit.
To create tailored offers:
Analyze the buying habits of frequent customers, like regular beer buyers, and pair those with less in-demand items such as chips or pretzels.
Launch targeted SMS or email offers with discounts for underperforming products to customers who are most likely to complete a purchase.
Use a loyalty program to offer exclusive deals on non-selling products to your most active members to encourage repeat visits and higher basket value.
Monitor which deals convert and refine your offers based on what actively drives sales.
Even in fast-paced settings like grocery stores, this helps clear slow stock. For example, if cereal is selling well, offer deals on slower foods like granola bars or plant-based milk. The goal is to match products with shoppers and move what hasn’t sold.
Not every product sells the same everywhere. What sits untouched in one store might be a top seller in another, especially across neighborhoods with different foot traffic or customer profiles.
If you operate multiple stores, use your POS system to:
Compare sales performances by location, and determine ideal stock levels and reordering windows for each.
Transfer the product to where it sells, like moving popular energy drinks from a quiet suburban convenience store to a high-volume store in a busy urban spot.
Rotate inventory strategically to meet specific local demand, like stocking liquor stores near sports stadiums with drinks and snacks ahead of a major event or game.
Track inventory levels in real time to avoid restocking delays or double ordering when adjusting inventory between stores.
Transferring products across locations might seem complicated, but with a POS system that syncs levels in all stores, you can use the data to avoid write-offs, reduce clutter, and meet customer demand.
Holding onto slow-moving inventory ties up shelf space and hurts your bottom line. If goods aren’t moving after repeated attempts, your POS data can help you know when to walk away.
Use sales reports to:
Flag products past their usual sales window or have declining turnover ratios.
Evaluate vendor return options — some suppliers accept unsold units back, but this type of agreement may have to be made before purchasing.
Clear inventory strategically with flash sales or bundle offers before resorting to a large discount.
A liquor store, for example, might liquidate a discontinued wine line before its label redesign makes it obsolete inventory — bundling it with complementary products, offering case discounts, or flagging it in a clearance section to move it quickly.
Reacting to slow-moving inventory starts with having industry-specific technology to give you the data early enough to take action. You also need staff who can identify aging stock in the POS system if it goes unnoticed.
With POS Nation, retailers get access to specialized technology, with systems built for retail, grocery, convenience, phone repair, tobacco, and liquor industries. Each one is tailored to your market to help you track inventory, run strategic promotions, and restock based on real demand.
Schedule a free demo to find the best-fit POS for your business and start converting shelf sitters into profit.