Navigating the retail conundrum: striking the right balance in inventory management

It has been a challenging few years for supply chains. After pandemic-related supply chain disruptions, many retailers increased their inventory for the 2022 holiday season. After all, demand was still booming at the time. But demand has come down off its peak, and that presents an entirely different problem for retailers in 2023. Some major retailers have reduced inventory so as to not be left with products they can’t sell. Merchants face a dilemma this year, says Associate Professor of Marketing Vivek Astvansh in an interview with the Wall Street Journal. “They need to decide how much inventory to stock, while ensuring that the assortment is broad enough to cater to varied consumer tastes and preferences.”