Overstocks are poised to pinch your profits: The $471.9 Billion Retail Problem

In this new “on-demand” economy, created by Uber, Starbucks’ mobile ordering and Amazon’s same-day delivery, customers have elevated expectations for every need to be met immediately. However, retailers continue to struggle with connecting and taking action on their cross-channel data resulting in detrimental overstocks that threaten profitability year-round.

The final IHL research report, Retailers and the Ghost Economy: The Haunting of Overstocks, details the reasons behind retail’s $471.9 billion lost revenue worldwide due to overstocks – leading to losses of full-price sales, markdowns and loss of margin.

Leading causes of overstocks Overstocks total $471.9 billion in lost revenue annually for retailers worldwide with the top five leading causes being:
  • Forecasting failures ($170.2 billion) 
  • Spoilage ($80.5 billion) 
  • Supplier issues ($42.5 billion) 
  • Weather related issues ($39.8 billion) 
  • Improper marketing ($38.4 billion)
Download the IHL report free (normally a $2,000 value) to read about the technology strategies leading forward-thinking retailers are deploying to deliver both excellent experiences to their customers and increased profits to their shareholders.

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