February 2023
Featured in this insight: Retail
44% of UK retailers left with excess stock after Christmas and New Year discounting: A survey of UK retailers has found that 44% were left with excess stock, even after post-Christmas discounting, with baby and toddler goods the most affected sector.
The survey results came from a poll of 500 retailers by Inventory Planner, a forecasting and planning software company, which also found that six out of ten retailers discounted their products even further to try and clear excess stock.
While the baby and toddler sector was the worst affected for excess stock (67%), the issue extended across many sectors including fashion (58%), health and beauty (53%), DIY and Gardening (43%) and homeware (41%).
The research also found that larger companies were more affected by excess stock than SMEs. While 62% of large firms (categorised as having a turnover of £100m–£500m) reported excess stock, 42% of SMES did also (£100,000 to 1 million turnover).
Data from Inventory Planner also revealed that in 2022, a quarter of all excess stock was written off, with the survey finding that UK retailers on average have £65,000 of excess stock which has little value. Indeed, 59% of respondents said that if they failed to sell excess stock there would be 'dangerous ramifications' for their company.
Inventory Planner CMO Sara Arthrell said that many retailers are finding themselves with "a glut of unsold merchandise which is eating into profits." She added that, "Discounting cripples margins and is not sustainable over the long-term with the cost of living headwinds all retailers are facing.”
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