4 Tips for Grocery Managers Looking to Flush Old Stock
Inventory management is one of the responsibilities of a grocery manager. They make sure the products are moving, changing, and being sold to ensure the grocery remains profitable. So when the stockroom runs out of shelf space because of unsold items, it can be a problem. Many grocery products are perishable items, so they can’t stay on the shelves for too long. If they do, they end up expiring and being thrown away—which can add to the store’s expenses.
Having said this, as a grocery manager, it’s vital to regularly inspect your sales and inventory. You need to be aware of which products are moving fast and which are not so you can make more informed marketing decisions as well as meet the store’s sales goals. To ensure you flush these products before they perish, here are some things you can do.
Have a Sale
One of the best ways to flush old stocks is by holding a sale. Depending on the item you want to immediately sell, you can hold regular sales or promos. For example, if your grocery has a bakery or a baked goods section, you can offer a buy 1 get 1 free promo at the end of the day. This doesn’t just help clear your inventory of unsold products, but it also lets your customers know you sell freshly baked food daily.
You can do something similar in other sections of your grocery. Instead of a daily sale, you can dedicate a specific day of the week to sell packed meat or fresh produce at a discounted price. When you decide to take this route, make sure to inform your customers about the special deals. This way, your customers can look forward to the sale and you can sell all the items.
Another option is to have a seasonal sale where you can offer seasonal items at a lower price. This can help make room for new products as the seasons change and give bargain hunters new deals. For instance, sell turkey and cranberry sauce at a discounted rate as part of a post-Thanksgiving offer, or have a special deal on boxed chocolates after Valentine’s day.
Bundle Complementary Products
Creating a bundle of different products can help move unsold items off grocery shelves. You can group complementary products and sell them for a slightly lower price compared to if customers buy them separately.
As an example, you can combine pasta sauce and boxed pasta or a bottle of wine with some cheese. This lets you flush old stock and still gain some profit by combining a lower profit margin item with a higher margin item. If your customer buys the grouped products, you’ll get a blended margin of the combined items compared to when you just sell a single product. Also, when you regularly provide your customers with irresistible offers like this, you can gain their loyalty.
In addition, you can try this type of strategy with slow-moving items. Pair them with faster-moving products to avoid potential losses. Check your inventory and analyze which products you can pair together. Pairings don’t always have to be complementary products either. They can be different items from the same brand.
Place Items in a Different Area
One possible reason a product is not selling well is because of how you market them. In a grocery store, the shelves or aisle where you display items can have an impact on sales. When you place products on the eye-level shelves, they will most likely be noticed by shoppers.
If you want to reduce the old stock from your inventory, you can consider repositioning them in the grocery and placing them in places more visible and accessible for your customers. You can place them at an eye-level shelf, right by the entrance of the store, or near the checkout counters. This will increase the chances of customers seeing the products and buying them.
Overexpose Your Products
In case repositioning products in your grocery is not as effective as you hoped, you can always double your efforts and expose the merchandise more. This means placing more of those items in the store. You can display them by the entryway of the grocery so customers can see the products when they come in. Then, you can also have the same products at the back of the store.
To make this more effective, analyze the flow of traffic in your store and pay close attention to which areas or aisles shoppers frequently go to. Then, use this information when selecting a place to display slow-moving or old stocks. You can also practice cross-merchandising when selecting product placements. For instance, aside from placing bread on their appropriate shelves, you can also feature it in other parts of the grocery with other complementary items. You might decide to locate the bread stand near the deli, beside the spreads, or by the breakfast aisle.
One of the responsibilities of a grocery manager is to make sure the inventory doesn’t overflow with old stock. However, this can happen from time to time for different reasons. To ensure you reduce throwing out old stocks and losing profits, you need to find effective ways to flush these old stocks and find new homes for them.
