Dead Stock
Also called: obsolete stock, non-moving stock
What is Dead Stock?
Dead stock is inventory that has not moved for a long period and is unlikely to sell at its normal price — discontinued lines, wrong buys, expired seasonal goods. It occupies both cash and shelf space.
Why Dead Stock matters
Dead stock is a loss that has already happened but has not been recognised. Carrying it at full cost overstates both assets and profit, and it keeps consuming space that a selling line could use.
Dead Stock formula
Days since last sale = Today − Date of last sale for that SKU
Anything past your category threshold is a candidate for markdown.
How Dead Stock works in practice
Run an ageing report by SKU and act at fixed thresholds: promote, bundle, mark down, return to the supplier where terms allow, and write off what genuinely cannot sell.
Frequently asked questions
Set a threshold per category — 90 days for fashion, longer for hardware — and apply it consistently.