13 July 2026 12:51 pm
What with a heatwave, the World Cup, Wimbledon and multiple conflicts around the world, it's hardly surprising that the most common story I hear from the industry is "it's not great out there!"
In difficult times like these it's worth focusing on the well-worn phrase "cash is king", because a lack of operating cash is the most common reason businesses go bust. And that leads me nicely on to the statistic in the title of this article.
How much dead stock does the average retailer hold?
The average UK retailer is sitting on £66,000 of excess stock, roughly 20% of their inventory, according to research by Inventory Planner (part of Sage Group).
If that sounds familiar, you're in good company. Recent research by ROI Hunter found that 62% of UK retailers are struggling with too much stock.
Dead stock loses value every single day
What's more, the potential value of that stock is decreasing by the day. 'Dead' stock costs 20-30% of its value every year in storage, insurance and tied-up cash before you even consider depreciation.
Fast-moving technologies (like streaming electronics) are the biggest culprits here, thanks to how quickly the tech moves on and how often models are replaced. Speakers tend to have a longer model life, so that's some good news at least!
What that means for the amplifier on your shelf
But that shiny £5,000 amplifier on your shelf? It could easily be costing you £1,000-£1,500 a year just sitting there.
With typical margins, it could be completely unprofitable in a little over a year. That is, unless you move it on quickly…
Stock control: the quiet secret of great hi-fi retail
I've long believed that the secret to a great Hi-Fi retail business, beyond expected qualities like great service, knowledge and trustworthiness, is stock control. Not sitting on dead stock but moving it on fast always delivers the healthiest cash position.
That's why, some years ago now, I built idreamav.com.
It's built for professional Hi-Fi retailers to advertise their slower-moving items. Site users are all focused music lovers, and for them your end-of-line, ex-demo and used items represent superb value, making idreamav.com the ideal marketplace to cheaply and easily reach the buyers who want exactly what's gathering dust on your shelves.
It's simple to use, integrates with your traditional advertising methods and offers a highly targeted, cost-effective way to extend your marketing reach.
Join some of the UK's most respected retailers and list your first items today at idreamav.com.
Just think what you could do with a healthy slice of that £66,000 back in your business!
Sources:
- Inventory Planner (Sage Group), UK merchant research: average excess stock of £66,000 per merchant, equivalent to 19% of overall inventory.
- ROI Hunter retail research, reported by 365 Retail.
- NetSuite (Oracle), "What Is Dead Stock?": carrying costs typically tie up 20-30% of inventory value annually.
