Why is stock rotation important in retail?

Stock rotation is crucial in retail primarily to minimize the loss of older items. This practice ensures that products are sold before they reach their expiration date or become outdated. By prioritizing the sale of older inventory—often referred to as "first in, first out" (FIFO)—retailers can effectively manage their stocks and reduce the risk of items being unsellable due to spoilage, obsolescence, or damage.

Implementing stock rotation helps maintain product freshness, which is particularly important in perishable goods and can also affect customer satisfaction. When customers consistently find fresh and appealing items, their overall shopping experience is enhanced, fostering brand loyalty and repeat business. Additionally, minimizing losses from expired or outdated products can have a significant impact on the retailer's bottom line, making stock rotation a strategic necessity in inventory management.