Buffer stock…what is it?
Different times call for different inventory strategies. However, when the function of stock is not clear, changing the inventory approach can often prove problematic. Many retailers lack synergy between the inventory strategy and the overall strategy of the business. As a consequence, many retailers struggle to align the inventory strategy with the strategic focuses of the various divisions that exist within the organisation.
For DIY stores, this is a very real issue. For instance, in recent times, the popularity for younger people to perform basic maintenance on their homes has decreased. Whereas parents and even grandparents may have been keen home decorators, this trend has drastically reduced. In essence consumers are now spending less time on household chores. As a consequence of this, particularly young people, do not even own a hammer let alone a toolbox. A trend which would have been unthinkable to older generations. Given the impact this trend will have on demand, how should retailers respond?