Aged inventory: what it is worth and who would buy it
The short answer
An aged inventory view groups every line by days since its last sale, such as 0 to 90, 91 to 180 and over 180, and values each band at cost. For lines over 180 days, find customers who recently bought the same category and price point, since they are the cheapest route to clearing it.
How to calculate inventory aging, band by band
Why it matters
Aged stock ties up cash and space, and it loses value each month it sits. Valuing it by age band shows finance how much is at risk of write-down, and finding likely buyers turns part of that risk into a targeted sale at a smaller discount.
The question to ask
Copy this into Lexi as written.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a jewelry retailer. It values stock at cost by age band, then looks for past buyers of the aged lines.
- 0 to 90 days: $6.8 million
- 91 to 180 days: $1.9 million
- Over 180 days: $1.1 million, across 340 lines
What the data shows
11% of inventory value is over 180 days old, and two-thirds of it sits in white gold rings priced $600 to $900.
What it means
2,700 customers bought rings in that price band in the past year, and 1,100 paid full price. There is a ready audience for the aged stock.
What to do
Offer the 1,100 a private preview ahead of any storewide markdown.
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Frequently asked questions
What is the difference between aged inventory and slow moving inventory?
Aged inventory is grouped by how long since a line last sold, so it measures how stale stock has become. Slow moving inventory still sells, just below the pace needed to clear it. A slow line can become aged if nothing changes, so track both and act on slow lines first.
Should inventory age run from the receipt date or the last sale?
Use both for different questions. Age since receipt shows how long stock has been held, which matters for cash and space. Age since last sale shows whether it is still selling at all. A line received a year ago that sold last week is a very different problem from one that has not sold in six months.
How is an aged inventory report different from a dead stock report?
Dead stock is the oldest band: lines with no sales for a set period, often six months or more. An aged inventory report covers every band, so it also shows stock heading toward dead before it gets there, which leaves time to act at a smaller discount.