Disrupted Retail – How the Pandemic Exposed Retail’s Hidden Inventory Distortion
Since the beginning of time, retailers have struggled with having what the customer wants to buy in-stock when they want to buy it. Inventory distortion occurs when a retailer has too many of an item (overstocks) or too few of an item (out-of-stocks). In an overstock situation, the retailer must heavily discount the item in order to sell it, and in the out-of-stock situation the retailer risks losing
the sale. As retailers have employed advanced forecasting and inventory systems, improvements have been made over the years. However, when Covid-19 hit, this not only blew apart existing progress but also due to the rapid rise of additional digital journeys, the pandemic exposed problems that were previously hidden within the retailer’s stores. This research paper reviews this issue and recommends solutions to this massive issue.
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