Dead stock

What is dead stock?

Dead stock is stock you still hold that has stopped selling. You’ve paid for it, it’s on the shelf, and the cash in it can’t be spent on anything else until it moves. There’s no official cut-off, but 90 days with no sale is a common point to start looking.

How long before stock counts as dead?

You choose. A shorter period catches a problem sooner, but it also flags products having a quiet spell. A longer one flags fewer, and the ones it flags are more surely stuck.

Our calculator and guides use 90 days. Verity’s own reports start at 180 days, and you can set them to 30, 90, 180 or 365 days to suit what you sell.

What counts, and what doesn’t

Taking 90 days as the line.
The stockIs it dead stock?
In stock, no sale in 90 days, and you’ve had it longer than thatYes
Added in the last 90 days, no sale yetNot yet: it’s new
Out of season, sold well last seasonNot yet: judge it over a full year
Still selling, but more than a year of stockNo: it’s excess stock
Sold outNo: there’s no cash in it

Seasonal stock is the one to watch. A winter coat with no sale since March isn’t dead in October, it’s waiting for winter. If you sell by the season, look back a full year.

Is dead stock the same as excess stock?

No. Dead stock has stopped selling. Excess stock still sells, only too slowly: you hold more than a year of it. They want different decisions. Dead stock is a discount, a bundle or a write-off. Excess stock is a reason to stop reordering and let it run down.

What do I do about it?

See dead stock listed line by line in the tour, on an example shop.