Stock Inaccuracy: A Hidden Problem in Retail

Stock Inaccuracy: A Hidden Problem in Retail

Pavel Ryukhov, Senior Retail Consultant with CEO/COO background at regional and international retail. Advisor at Akuret. 2025/26/01

Pavel Ryukhov, Senior Retail Consultant with CEO/COO background at regional and international retail. Advisor at Akuret. 2025/26/01

Stock inaccuracy can show up in many ways on a retail manager’s desk. Unlike the structured environment of warehouses with Warehouse Management Systems (WMS), retail operations are far more complex and prone to errors.

If you’re short on time, monitoring stock accuracy indicators such as negative stock balances or items without recorded sales is crucial. Ignoring these signals can damage sales and, in the end, harm your profit and loss (P&L) statement.

Stock inaccuracy can show up in many ways on a retail manager’s desk. Unlike the structured environment of warehouses with Warehouse Management Systems (WMS), retail operations are far more complex and prone to errors.

If you’re short on time, monitoring stock accuracy indicators such as negative stock balances or items without recorded sales is crucial. Ignoring these signals can damage sales and, in the end, harm your profit and loss (P&L) statement.

Stock inaccuracy can show up in many ways on a retail manager’s desk. Unlike the structured environment of warehouses with Warehouse Management Systems (WMS), retail operations are far more complex and prone to errors.

If you’re short on time, monitoring stock accuracy indicators such as negative stock balances or items without recorded sales is crucial. Ignoring these signals can damage sales and, in the end, harm your profit and loss (P&L) statement.

A Personal Experience: The TV Department

One example comes from my time as a floor manager in charge of Nonfood items. The TV department, despite being a solid cash flow generator, posed unique stock management challenges.
I found that many SKUs in this department weren’t available on the shelves. The reason? Damaged or malfunctioning units were piling up in the backroom, waiting for management decisions instead of being addressed promptly.

A Manual Solution to a Big Problem

To handle these challenges, one category manager took an unusual approach. Before placing new orders, he personally called all 48 Media departments across our stores to verify the availability of TV sets for customers.
While this ensured accurate stock information in the absence of reliable inventory systems, it was a time-consuming and inefficient process that highlighted the need for better solutions.

Damaged Stock in the “Red Zone”

This isn’t just a problem with TVs. I’ve seen similar situations where damaged electronics sit in what’s often called the “red zone” for months, untouched. These delays require investigation to identify the root causes and minimize financial losses for both the store and the company.

The Write-Off Rule: Simple but Challenging

One straightforward solution I’ve tried to implement is this: “Write off products immediately upon recognizing they are unsellable.”
However, even such a simple rule faces challenges. Improper employee practices and outdated procedures often limit write-offs to management, delaying action when speed is critical.

AI: The Future of Stock Management

Imagine a world where stock accuracy issues don’t exist. Advancements in artificial intelligence (AI) signal a revolution in inventory management, promising to simplify processes, reduce reliance on highly qualified staff, and make it easier to maintain stock accuracy.

Hope for the Industry

Organizations such as Akuret Solutions are already forging the path in this field. Their latest endeavors with retail entities demonstrate the significant outcomes that can be achieved by utilizing precise inventory data and effective processes. This progress will no doubt set a new standard over time, enhancing operations for retail sectors and boosting efficiency on a broad scale.

Final Thoughts

Stock inaccuracy doesn’t have to be an unavoidable problem in retail. By acting on the warning signs, streamlining processes, and embracing new technologies, retailers can tackle this challenge and build a more efficient, profitable future.

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