The Out of Fashion Inventory Problem

Maryanne Smith Bohlinger
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208789.015
Hit highlights
On Off

Abstract

An established women’s specialty store opened a new small boutique catering to their upper income market sector of conservative New England women who want exclusive, high-fashion merchandise. The boutique would allow them to try a new merchandising approach to hopefully gain more of a fashion leadership role and draw a higher fashion-oriented customer than their other store. It was immediately successful and quickly the store gained a high fashion image. However, a new buyer discovered a large amount of old, out-of-fashion, expensive stock in inventory. After doing a physical count, it was found that 25 percent of inventory dollars were tied up in slow-moving and old stock. The previous buyer bought new, exciting merchandise and merely stored the slow-selling items in the stockroom, some for over two years, undetected by others. This created an inventory and budget problem for the new buyer that needed to be resolved.


This content is not covered under a current subscription plan

Please contact your library to request a trial. For more information see Subscriber Services