RSR set out to understand how retailers and their trading partners are responding to the unique challenges posed them in 2009: the need to localize assortment to increase shopper relevancy and appeal, and the need to reduce inventory as much as possible. The responses are encouraging. In a time of merchant princes, “product” was once king: the right assortment could make or break a retailer. In today’s reality, inventory is the lifeblood of retail.

The research finds that while retailers generally feel they have a solid handle on their inventory, in reality they are plagued by out-of-stocks on fast-moving items and overstocks in slow-moving inventory. The report provides best practices from high-performing retailers and recommendations for how all retailers can better manage their inventory in tough economic conditions.