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LIFO is more often used with heavier, fast-moving, non-perishable or homogeneous goods in warehouses, when rotating items is not essential, practical or time-efficient.
The benefits of LIFO are mostly associated with accounting because retailers end up matching the most recent cost against their revenue.
We love what we do, driving two thousand miles a week in search of new merchandise.
Even if a retailer has done the best it can to rotate stock and manage incoming product, sometimes expiration dates creep up anyway.
Selling the product with a lower profit margin is better than a full loss plus the cost of disposal.
When new stock comes in, it gets put in the back, pushing the older stock forward to be sold first.
While this may seem like a no-brainer and saves retailers thousands of dollars in lost product, not every store takes the time to do it.
If you’re a merchandiser or brand, you need to know the standard policies of your retailers and educate them on the stock rotation policy that best fits your product(s).