Retail arbitrage is fairly simple concept to understand. When someone takes advantage of market price differences of a product and sells it a much higher price for making a profit. Retail stores lose heavily due to retail arbitrage. And how?
Well, let me explain in layman’s term. Suppose you own a group of stores named ‘Parivar’. There are around 10 stores in the city. Basically, each store sells 10 chairs per week. But one week every store only manages to sell 5 chairs. And the next week shipments of 10 more chairs arrive as per expected sale from each store. The next week also retains the same figure and 10 more chairs are shipped to each store. Remember there are 10 stores like that. In the 2nd week, there is no space left in store to accommodate huge stockpile of chairs in the store. So, each store decides to remove those extras from the stores. The decision is taken to sell it online or to anyone who is willing to purchase at discounted rate and hence quickly remove those inventories. This is known as retail arbitrage.
And this retail arbitrage is causing you huge loss which can sum up to million bucks if not taken care of. Usually, it is not taken care of. So why not use predictive analytics technology to avoid retail arbitrage and to have balanced inventory levels according to the demands of the market. Use retail intelligence and prevent excess stock on a daily basis via predictive analytics. Provide a smart retail store to your customers. Need we say more.
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