Guest Column | August 18, 2014

Item-level RFID Is The Cure For Out Of Stocks

By Will Roche, Xterprise

Let’s start with the “disease”! Once deemed incurable and just treatable, out of stocks and overstocks for retailers have always been a big hairy problem. If you do not have the right mix of product or specifically the style, size and color as in the case of footwear and apparel you pretty much lose the sale, add unneeded cost and in many cases lose the customer too! How bad is this “disease”? IHL’s President, Greg Buzek, discussed key points of the inventory distortion study in a recent webinar titled, “Inventory Distortion ― Retail's $800 Billion Global Problem.” The key points included:

  • Out-of-Stocks make up 56% of the $818 Billion figure, or $456.3 Billion.
  • Overstocks account for the remaining 44%, or $362.1 Billion.
  • Worldwide, nearly $1.5 trillion of merchandise annually is in an overstock position that creates a loss in revenue.

“The study defined out-of-stocks as any situation wherein a consumer enters a retail setting with the intent to buy a specific item and does not find the item. Overstocks were defined as any situation wherein a retailer has on hand more stock of a particular item than is supported by current demand.”

Please log in or register below to read the full article.


Get unlimited access to:

Trend and Thought Leadership Articles
Case Studies & White Papers
Extensive Product Database
Members-Only Premium Content
Welcome Back! Please Log In to Continue. X

Enter your credentials below to log in. Not yet a member of Retail IT Insights? Subscribe today.

Subscribe to Retail IT Insights X

Please enter your email address and create a password to access the full content, Or log in to your account to continue.


Subscribe to Retail IT Insights