The Art of Balancing Trends and Timelessness in Retail Inventory Strategy

Every year, designers push creative horizons, unveiling innovative styles that push the boundaries of traditional design and showcasing new and unique items that align with current trends. Some of these new pieces quickly capture retailers’ attention and become best-sellers, while others fade into obscurity. Retailers are also dealing with past trends making a comeback while balancing the classic items that have become permanent fixtures in stores.

This poses the question: How can retailers strike the right balance between trendy and timeless pieces in their inventory to maximize sales and customer satisfaction?

Achieving this balance requires a deep understanding of the industry and the preferences of your target audience.

Understanding Trends vs. Timelessness

Various factors influence trends. Celebrity endorsements have always carried weight, but with the growth of social media, influencers around the world are now serving their style preferences to their followers. For example, trendy jewelry pieces like asymmetrical earrings, cuffs, stackable bracelets, and layered necklaces are capturing the attention of a younger, fashion-forward demographic. On the other hand, timeless pieces such as diamond engagement rings, pearl necklaces, and gold hoop earrings are consistently in demand.

It’s important to remember that trends are fleeting, so stocking too many popular items can lead to overstock once the trend fades. For more traditional pieces, ensuring these items are stocked and ready can be a game changer, giving customers the basics they want, when they want them.

Balancing Trendy and Timeless Inventory

To achieve the optimal inventory balance, retailers should consider the following strategies:

1. Data-Driven Decisions: Retailers can utilize sales data and market research to understand their customers' buying preferences and current demands, allowing them to forecast their inventory so they have the optimal amount of product. As trends emerge and fade, retailers can then adjust inventory based on the data. Additionally, they can use previous years’ data to understand when they may need more or less inventory. For example, jewelry stores see an influx of traffic around the winter holidays, prompting the need for more inventory during those busy times.
2. Flexible Inventory Management: Retail technology like a point-of-sale (POS) system can help retailers understand their in-store stock, whether it's on the floor or in backroom inventory. With one system that can track everything, retailers can be nimble — bringing more desired inventory to the store, when needed, or making adjustments to order volumes if items aren’t gaining traction.
3. Customer Feedback: Through in-person interactions and reviews, technology systems allow retailers to track and get valuable feedback about their product offerings, which can then effectively influence their inventory. This can help guide procurement decisions, enabling retailers to stock items that meet consistent demand.
4. Vendor Relationships: Building strong relationships with suppliers can help retailers to negotiate favorable terms. For jewelry retailers, for example, smaller, more frequent orders can help them avoid overstock. This type of flexibility allows retailers to adapt to ever-changing trends without overcommitting to mass quantities.
5. Trend Adjustments: Trendy inventory can make or break many retailers, requiring immense precision when bringing items into a store. It’s important that a retailer doesn’t overindex on these pieces at first. If a trend is hit right, the products will sell out immediately, which can be a huge success and have an enormous impact on the bottom line. The retailer can then restock the product as it sees fit. If the trend fails, it isn't stuck with losses and inventory that it will ultimately have to sell at a discounted price.

Balancing inventory trends and timelessness is an art, and with industry-specific technology, retailers can get it right. The most important lesson is to continue listening to customers and letting data-driven insights guide the way.

Nick Gurney is the general manager of Jewel360, the cloud-based point-of-sale system designed for leading jewelry retailers.