Every product on the shelves, in the stockroom, and in transit to the store forms the retailer’s inventory. Inventory is the stock of goods available for sale. It represents both a necessary asset and a major capital investment.

Too little inventory produces empty shelves and lost sales. Too much ties up cash and risks obsolescence or spoilage. Retailers use forecasting, automated replenishment, and regular counts to keep levels appropriate. Inventory turnover—the speed at which stock is sold and replaced—is a key measure of efficiency.

Technology such as barcode scanning and RFID improves visibility of where inventory sits at any moment. Accurate inventory records underpin online availability claims and click-and-collect promises. Managing inventory well is one of the most consequential operational disciplines in retail.

The products customers see are only the visible fraction of a larger inventory system.