What strategies can reduce shop inventories affected by poor sales?

Implementing overstock markdowns is an effective strategy for reducing shop inventories affected by poor sales. This approach involves reducing the price of excess inventory to stimulate demand and encourage sales, allowing the business to clear out slow-moving items. Markdowns can help draw in price-sensitive customers who might not have purchased the items at their original prices, thereby increasing the turnover of stock.

When inventory levels are high and products are not selling well, markdowns can help to avoid the carrying costs associated with excess inventory, such as storage and potential obsolescence. This strategy not only helps in reducing unsold stock but can also improve cash flow by converting inventory into sales revenue.

While creating new product lines and increasing advertising efforts can potentially drive sales, these strategies may not directly address the immediate issue of overstocked inventory. Limiting customer returns does not effectively reduce existing inventory levels and could adversely affect customer experience and satisfaction.