It’s the practice of ordering more inventory, stocking up, while offered at a discount from a supplier. The retailers buy enough to bridge the time between the next deal. It bridges the gap between the two promotions periods.
The biggest issue is spoilage because of low sales, slow moving stock. Regardless of the deal, the retailer should understand how fast the item will move before stocking up to avoid spoilage.
Many retailers know what and when things are selling in their store but may lose track of inventory over time. Multi-unit operators can also lose sight of what is selling as they centralize their ordering to make the most of their orders and supplier relationships with volume discounts.
Back-office solutions can help keep track of inventory with stock movement and other reports. These reports track dead, fast and slow-moving items to help c-store operators make inventory decisions, including what items should use a bridge buying strategy.
Learn more about back-office solutions and how you can track margins, inventory turns and pricing.