Slow-moving stock is the most expensive thing in a clothing shop. It doesn't just sit there. It takes up rail space that could hold something that sells, it ties up cash you need for reorders, and every week it hangs there it's worth a little less.
The good news is that most slow stock is predictable. It usually comes from a handful of buying habits, and once you know what they are you can avoid most of it before it arrives.
Why clothing stock stops selling
When a line stalls, the cause is almost always one of these:
• Wrong customer. The piece is nice, but it's not for the people who shop with you. This is the most common reason and the easiest to fix at the buying stage.
• Wrong price point. It's right for your customer but priced above what they'll pay for that type of item.
• Wrong timing. Heavy knits delivered in late November, linen in late August. Good stock, wrong week.
• Wrong depth or size split. The style sold, but you bought too many, or bought the wrong sizes, and what's left is the tail.
• Poor display or photography. Especially online. A piece that's badly shot won't sell, regardless of how good it is in person.
Notice that only one of these is really about the product itself. Most slow stock is a buying or merchandising problem.
How to spot slow sellers early
The sooner you catch a slow line, the cheaper it is to fix. Don't wait for the end of the season to find out.
The simplest measure is sell-through rate:
• Sell-through % = units sold / units received x 100
Check it at two weeks and four weeks for every new style. As a rough guide for fashion lines:
|
Time since delivery |
Healthy |
Watch it |
Act now |
|
2 weeks |
25%+ |
10% to 25% |
under 10% |
|
4 weeks |
45%+ |
25% to 45% |
under 25% |
|
8 weeks |
70%+ |
50% to 70% |
under 50% |
Core basics sell more steadily, so judge them over a longer window. Trend pieces should move fast; if they don't, they rarely recover.
Also watch weeks of cover: stock on hand divided by average weekly sales. Anything over 12 weeks on a fashion line is a warning sign.
Stop it at the buying stage
Almost every slow line was bought for the wrong reason. Before you add a style to an order, ask yourself honestly:
• Can I name the customer who will buy this?
• Does it sit at a price my customers already pay for this category?
• What will it be worn with, and do I stock that?
• Would I still buy it if I couldn't see it on a model?
If you can't answer the first one, don't buy it. "It's gorgeous" isn't a customer.
Then keep the quantities small on anything new. Buying 6 of an untested style limits your downside to 6 pieces. Buying 24 because the unit price was a bit better is how dead stock is made.
Balance trend pieces with core stock
Trend-led clothing is exciting and it brings people in. It's also the riskiest thing you can buy, because its window is short and it's hard to predict.
Core pieces (good basics, reliable shapes in your customers' favourite colours) sell steadily all year and rarely need discounting. A healthy womenswear range is usually built around 60% to 70% core and 30% to 40% trend. If more than half your buy is trend-led, expect more of it to end up in the sale.
What to do with slow-moving clothing
Once you've spotted a slow line, act in this order. Each step costs you a little more margin than the one before, so start at the top.
1. Move it. Change where it hangs. Put it at the front, on a mannequin or next to your bestsellers. Online, move it up the collection page and reshoot it if the photos are weak.
2. Style it. Show it as part of a complete outfit. A lot of pieces don't sell because customers can't picture wearing them.
3. Bundle it. Pair it with a strong seller, for example "any top with these trousers for £X". This shifts stock without the visible damage of a markdown.
4. Mark it down properly. If you're going to discount, do it once and do it meaningfully. A 10% reduction rarely moves anything. 25% to 30% usually does, and 50% clears the tail.
5. Clear it out. Anything that still hasn't sold after a full markdown should go. Sell it to a clearance buyer, run a sample sale or donate it. Its only job now is to free up space and cash.
A dress that sits on the rail for six months at full price is not a dress that's "still worth £40". Its real value is whatever someone will pay for it today.
Should retailers discount slow-moving stock?
Yes, but on your terms. Retailers who discount early and firmly lose less money overall than those who wait and hope. The cash you release goes straight back into stock that sells, and that stock earns full margin.
The mistake is discounting everything, all the time. Customers learn to wait. Keep markdowns to specific lines at specific times and your full-price sales stay healthy.
Use your data every week
Fifteen minutes a week with your sales report will prevent most dead stock. Look at:
• your top 10 sellers, and whether you have enough to reorder
• anything with a sell-through under 25% after four weeks
• sizes that are selling out early, and sizes that aren't selling at all
Do this every week and you'll buy better every month.
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