Managing Inventory Like A Pro (Even with One Shop)
How to Stop Stockouts, Reduce Waste, and Keep Your Shelves Working for You
For many independent retailers and hospitality businesses, managing stock can feel like a guessing game. You don’t have a full-time inventory manager or an advanced system — just shelves, spreadsheets, and experience.
Yet good inventory management doesn’t require expensive software or big teams. It’s about adopting a few disciplined habits that keep your cash flow healthy, your shelves balanced, and your customers happy.
Why Smart Inventory Management Matters
When stock control slips, profits leak quietly.
- Tied-up cash: Every overstocked product is money sitting on the shelf instead of your bank account.
- Lost sales: Running out of popular items costs not just today’s sale, but future loyalty.
- Hidden costs: Expired or unsold items reduce margins and erode confidence.
According to the British Retail Consortium (2024), UK retailers lose an average of 3–5% of annual turnover to poor inventory control (https://brc.org.uk/). That’s money that could fund marketing, staff training, or upgrades.
Even small businesses can act like the pros — with data, structure, and a rhythm for reviewing stock.
1. Get Clear on What You’re Managing
Start by defining exactly what stock matters most. Many small businesses track everything, but not all items are equal.
Use the ABC method (adapted for small shops):
- A items: Top sellers or high-value stock (20% of your range, 80% of your revenue).
- B items: Mid-range sellers that move regularly.
- C items: Slow movers — they need tighter control or smaller orders.
Focusing on “A” products first lets you protect revenue-critical items without wasting time on the rest.
If you’re using a POS system like EPOS Now or Shopify POS, these categories can often be filtered automatically in your reports. You’ll see what’s selling fastest and which lines are gathering dust.
2. Track the Right Numbers — Weekly, Not Just Monthly
Big retailers have forecasting departments. You have your sales reports — and that’s enough.
Key metrics to check weekly:
Sell-through rate: Percentage of stock sold versus received.
Stock turn: How many times do you sell your total stock each year (aim for at least 4× annually).
Days of inventory: Average time items sit before selling.
If you’re not using inventory software, record these in a simple spreadsheet. Over 4–6 weeks, patterns emerge, which products are reliable earners, which fluctuate seasonally, and which just take up space.
According to Retail Economics (2025), even small retailers using simple stock metrics reduce waste by 20–25% within the first quarter (https://www.retaileconomics.co.uk/).
3. Build Reordering Rules You Can Stick To
Set simple, visible triggers for restocking. This stops you from overordering on instinct and helps maintain consistency even if someone else steps in.
Example rule:
“When we hit five bags of coffee beans left, reorder 20.”
For retail or hospitality with variable demand, use a par level — your minimum acceptable stock before reordering.
To calculate:
Par Level = (Average Weekly Sales × Lead Time in Weeks) + Safety Buffer
Post these reorder rules near your stock area or inside your digital notes — so anyone can follow them.
4. Review and Adjust Regularly
Set a recurring time each week (ideally the same day) to:
- Check your “A” products’ stock levels.
- Review last week’s sales and waste.
- Update your order sheet or supplier email.
If possible, use your POS system’s built-in low-stock alerts. Even free versions often allow thresholds or basic reports.
The key is consistency. According to a Small Business Federation report (2025), independent retailers who review stock weekly achieve 15–20% better cash flow predictability than those who do it monthly (https://www.fsb.org.uk/).
5. Use Data to Strengthen Supplier Relationships
Suppliers respect businesses who track data and order smartly. Share your insights: “We sold 50 units of your product last month, if we commit to 60 next month, can we get faster delivery or a small price break?”
Data-based negotiation works even for small orders. It shows professionalism and builds trust.
If your supplier knows you plan ahead, you’ll often get priority stock allocation — especially in busy seasons.
Next Step: Simplify Your Stock Control
Inventory isn’t about counting boxes, it’s about control. A simple, consistent system will keep your shelves turning and your business growing.
Email me at [email protected] t receives the Inventory Control Worksheet
Identify your “A, B, C” stock categories
Record weekly sales and reorder levels
Set up simple par levels and restock triggers
Small steps make a big difference when done consistently.
