"How can money be the root of all evil, when shopping is the cure for all sadness..." Elizabeth Taylor
From a store's perspective, stock management means controlling the stock that is being bought so that customer needs are continually satisfied and maximum profitability is achieved.
Remember: Merchandise is typically the largest single asset in a retail business and, as such, its productivity is a critical determinant of any retailer's profitability.
Effective Stock Management is vitally important because:
Stock is Money
Stock is money invested and the profitability and financial viability of the retailer depends on the return obtained from that investment.
No stock or the wrong stock means no sales and no income. Since stock is the prime generator of revenue, having the right stock in the right quantities at the right time for the customer is fundamental.