Retail Dogma


What is Replenishment?

Replenishment is a process that is set in place to ensure every product that gets sold at the store is restocked, so that the store does not get into an out-of-stock situation while the products are available at the warehouse.

Why Is Stock Replenishment Important?

Stock replenishment is important in inventory management because it helps drive sales by avoiding out-of-stock situations through merchandise flow optimization.

This merchandise flow optimization is achieved when stores receive the right amount of merchandise they need to deliver sales at the right time.


If they receive extra merchandise the display will be cluttered and products will be all over the place, which will impact the shopping experience.

On the other hand, if they receive less merchandise than needed, or later than the right time, they risk losing sales due to stock in-availability.

Furthermore, stores that have poor replenishment systems risk losing market share on the long run. This is because when customers come every time and find empty displays or no stock for their favorite items, they will start to shift to the competition.

Also when stock is not being sent to stores regularly it will start to age and risk having higher stock obsolescence after some time.

Join the academy and learn about the different retail replenishment systems used in retail and the best practices for replenishing sold stock in the Merchandising & Inventory Management Course

Retail Management Courses

More Resources

Scroll to Top