What is one common retail strategy for handling perishable stock?

One common retail strategy for handling perishable stock is FIFO, which stands for First In, First Out. This approach ensures that the oldest stock is sold first, thereby minimizing waste due to expiration. By selling the items that were received first, retailers can effectively manage their inventory levels, maintain product freshness, and reduce the likelihood of customers purchasing expired items. This strategy is particularly critical in the context of perishable goods, where the shelf life is limited, and maintaining quality is essential for customer satisfaction and health standards.

In contrast to FIFO, methods like LIFO could lead to older stock remaining unsold, increasing the risk of spoilage. Storing items evenly regardless of their expiry does not prioritize which products should be sold first, and could potentially lead to selling items that are close to or past their expiry date. Selling expired items at a discount may attract customers in the short term, but it poses serious reputational risks and health concerns, which can ultimately harm the business. Thus, FIFO represents the most prudent and effective strategy for managing perishable inventory in retail.