How to Inventory a Retail Store

by Kate McFarlin, Demand Media Google

Retail stores, big or small, should be inventoried on a regular basis. While you may have software that calculates your current inventory, unless it is confirmed on a visual basis, you may not have an exact idea of your current stock. Performing a visual inventory also tells you if your loss-prevention techniques need to be changed and allows you to spot items that may not be performing as well as they should. As many small business owners may not be able to afford gadgets or the manpower to run them, the old-fashioned way of taking inventory still works and can be done quickly with minimal help.

Step 1

Print out a current inventory list. This list should include everything you currently have on hand in your store as well as the current amounts of each item. If you have stock-keeping units (SKU) on your products, make sure that the inventory list also includes a description to make the inventory process easier.

Step 2

Assign each employee to a different section of the store. If you have a few helpers, assign each one to a specific area of the retail store. For example, one can handle jewelry and accessories, while another handles men's clothing. If you are doing the inventory on your own, start with one department and work through each one before moving to the next.

Step 3

Go through each item on the list and count the current stock. You may want to count through each item twice just to double check. It is easier to be certain of your hand count the first time rather than having to go back to figure out potential problems later.

Step 4

Mark down on your printout how many items you actually have. Ideally, this number will match the number on your printout. Write down your number in pencil in a separate column or next to the printed quantity.

Step 5

Go through any damages or returns you may have had. Often, inconsistencies in stock amounts can be traced back to damaged items or returns that were not properly accounted for. If you have a return stock room, go through these items and match up their SKUs or descriptions.

Step 6

Reconcile the hand count with the printed count. This last step will help you determine the actual inventory in your retail store. If necessary, recount any items that may not match up.

Step 7

Update your inventory software with the correct amounts. Once you have determined the actual inventory, make sure to update your software with the new amounts.

Things Needed

  • Print-out of current inventory
  • Pencils
  • Helpers

About the Author


Suggest an Article Correction

Have Feedback?
