One store runs out of stock. Another ends the month with the same product sitting on the shelf.
When this happens within the same chain, the problem might not be a lack or excess of inventory. It might be distribution.
According to the IHL Group, stockouts and overstocks combined account for about $1.7 trillion in annual losses for global retail, equivalent to 6.2% of the sector's sales. 65.6% of this impact comes from stockouts and 34.4% from excess inventory.
Source: IHL Group, 2026 Inventory Distortion Study.
Both problems can exist at the same time. That is why, before buying more or resorting to promotions to move products, it is worth asking: is the inventory actually where the demand is?
1. The same product is missing in one store and sitting in another
An SKU may sell quickly in one location and remain stagnant in another. In this scenario, buying more to fix the stockout could further increase the chain's excess. Before replenishing, compare the turnover, coverage, and availability of the same product across stores.
2. Emergency transfers have become routine
Transfers between stores are part of operations. The problem begins when they become constant.
If certain units always need to source products from other stores, it may indicate that the initial distribution is not keeping up with demand patterns.
Observe which SKUs are transferred frequently and which stores repeatedly appear as the origin or destination. These patterns can help improve future replenishment.
3. One store discounts a product that sells well in another
Stagnant inventory often leads to promotions, but before cutting margins, it is worth checking if there is demand for the same SKU elsewhere in the chain.
If one store is nearing a stockout while another is accumulating inventory, redistributing may be more beneficial than applying a discount. Before creating a promotion, ask: does this product need a lower price or just a different address?
4. Total inventory looks healthy, but some stores remain out of stock
A chain may have thousands of units available and still lose sales, because total inventory and consumer availability are two different things.
The customer buys from a specific store, region, or pickup option.
That is why it is important to know where we have stock and where there is a higher probability of sales.
5. Imbalance only becomes apparent after the problem has already occurred
If the team only notices the problem after a stockout or when a product has been sitting idle for weeks, the operation is merely reacting to the consequences.
The ideal approach is to monitor early warning signs, such as:
- Acceleration or decline in turnover;
- Coverage per store;
- Risk of stockouts;
- Excess inventory in specific units;
- Sales discrepancies between similar stores.
This way, redistribution stops being just an emergency fix and becomes an integral part of network management.
Better redistribution also helps with better purchasing
Inventory movements also tell a story. If a store is constantly receiving the same SKU from other units, its needs may be underestimated.
If another store repeatedly sends out certain products, it may be receiving more than its demand can support. Over time, these patterns help improve replenishment, assortment, and purchasing plans. Therefore, in multi-unit chains, the question should not just be how much stock there is.
But what needs to change so that product and demand can meet?
