Seems like every day retailers and customers are inundated with new items in nearly every category such as chocolates, snacks, beverages that range from new flavors, to hybrids to variations of classics. If a retailer says "yes" to every new chocolate bar, they will be stuck with plenty of new inventory that doesn't sell. This "dead weight" only serves as a disservice for both the retailer (aka Joe Schmoe's liquors, quick stops, etc) AND most importantly, the customer.
When any retailer has a $40 box of junk taking up valuable retail space, they certainly stand to lose money when waiting too long to replace the "slow sellers" with another high potential new item.
Space to sales is the name of the game. That slow selling item is simply not "paying the rent".
If you were renting an apartment complex, wouldn't you require all the tenants to consistently pay the rent?
The items on the shelves are no different. Sure every items varies in its return, but everyone needs to pay nonetheless.
One solution would be to quickly replace the aforementioned item with a newer or different high potential new item of a similar category. A "high potential" item does more for any business than a "dead item".
Customers tastes constantly change and so should your product assortment mix!
Another solution that is very useful for many retailers would be to replace the dead space of a "dead item" with a duplicate of a top seller. This is called "double facing", when a product has multiple facings on shelf. Reasons for this merchandising tactic is to increase customer awareness of the product, help the retailer offset "out-of-stocks" with increased inventory on the sales floor, and to simply take up space.
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Very good info for us convenience store/ liqour store owners. Thanks!
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