Dead stock inventory: the working capital it ties up
The short answer
Dead stock is inventory that has not sold for a set period, such as six months. To size the problem, list every line with no sales in that window and multiply units on hand by cost. Then find the customers who bought similar products, so you can clear the stock with a targeted offer.
Sizing dead stock inventory in dollars
Why it matters
Dead stock holds cash and space that faster-selling lines could use. Sizing it in dollars, then finding the customers who would buy it, turns a write-off risk into a clearance plan with a smaller discount.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Find lines with no sales. List every product with zero units sold in your chosen window, across all stores and online.
2. Value the stock at cost. Multiply units on hand by unit cost to get the working capital tied up, and total it by category.
3. Find likely buyers. Look at who bought similar products or categories, and size each group so you know the reach of a clearance offer.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a homewares retailer with 22 stores. It values every line with no sales in six months at cost, then looks for past buyers of the same collection.
- Linen throw cushions: 1,400 units × $11 = $15,400
- Ceramic table lamps: 310 units × $38 = $11,780
- Rattan side tables: 95 units × $112 = $10,640
What the data shows
$37,820 of working capital sits in dead stock. In the past 18 months, 2,900 customers bought from the same collection, and 640 of them paid full price.
What it means
The cushions and lamps have a ready audience. The side tables have about 120 likely buyers, too few to clear 95 units by email.
What to do
Send a 20% offer to the 640 full-price buyers ahead of any storewide markdown, and plan a store transfer or write-down for the side tables.
Would you like me to build the 640-customer segment and push it to Klaviyo?
Frequently asked questions
How long without a sale makes stock dead?
Many retailers use six or twelve months, but the right window depends on your category and season length. Seasonal lines need a longer view than basics. Pick a window, apply it consistently and review it each quarter.
Is dead stock the same as slow-moving stock?
No. Slow-moving stock still sells, just below the pace you want, while dead stock has stopped selling for your chosen window. Slow-moving lines are the early warning, so review them first and act while a smaller discount or a transfer can still clear them.
Can I sell dead stock without a deep discount?
Often, yes. Offering stock to customers who already buy similar products usually needs a smaller discount than a sitewide sale, because you reach people with a reason to want it. Test one segment first, then widen the offer in stages only if stock remains.