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Whether you’re selling sneakers, sofa sets, or fine jewelry, carrying too much stock ties up cash, eats up space, and leads to markdowns. According to the National Retail Federation (NRF), retailers lose an estimated $50 billion annually due to inventory distortion, which includes overstock and out-of-stock issues.
It calculates the number of times average inventory is sold during a period. A higher turnover ratio means inventory is sold more times throughout the year. This indicates strong sales and effective inventorymanagement practices. A lower turnover ratio means inventory sits on shelves longer before being sold.
Throughout the history of retail, success and failure has come down to how well a company manages — and profits from — its inventory investment. Inventorymanagement teams calculate the In-Stock Percentage by dividing the number of stores that have a SKU in stock by the number of stores that should stock that SKU.
This shift from reactive to autonomous AI is helping retailers streamline operations, enhance CX, and stay competitive. Whether you’re in apparel, footwear, jewelry, or home goods, agentic AI is redefining how retail works in 2025 and beyond. It’s essential to find the right balance.
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