Case Study: How a Florida Retailer Reduced Excess Inventory by 40%

Reducing inventory? Every business owner’s dream. However, it is easier said than done.

Managing excess inventory is a persistent challenge for every business, but especially retailers. Inventory ties up capital and increases costs for warehousing or shipping. In the whole picture, it does not bring any type of profits.

This also goes to the not-so-eco-friendly option as its markdowns more risks and waste.

While businesses are busy about making profits and maximizing them, there is an implicit responsibility with the environment. This is even more obvious by following the recurring demand for sustainable businesses, products, and approaches.

At Coastal Surplus Solutions, we understand what it is to work with green practices. More specifically, to work with the circular economy practices and consider every impact from inventory.

We source surplus goods to give items a second chance. But what happens when your inventory is already full of these second chances?

We want to show you a reduce excess inventory case study. It details how a Florida apparel retailer was able to move stagnant stock and make it profitable. All of this leading to a friendly approach to waste.

The Problem: $200.000 in Stagnant Apparel Inventory

How can you get rid of so much value?

In early 2025, the mid-sized Florida retailer found itself with over $200k worth of unsold apparel.

Considering the time of the year, this happened because of overstocking for the holiday season, and trying to sell it off right after it. however, the amount is the real problem.

Despite the seasonal promotions and markdowns, the inventory turned into waste for the retailer. Sales were slow, and it did not contribute to profits.

The holding costs were mounting as apparel and boxes were piled up in warehouses, increasing investment and expenses.

The risk of further devaluation loomed and was a recurring worry for the retailer. This is quite common in the fashion industry, since most retailers go overboard with their stock. They face excess and then don’t know how to handle it without eroding margins or brand value.

Now, besides tying up working capital, excess inventory comes with extra expenses. This is what ends up affecting profit margins and being able to invest more or not in new collections and items.

According to Centric Software, optimizing inventory levels is crucial for cash flow, profitability, and sustainability in retail. Hence, take the time to go over all elements and consider the issues.

You will notice a massive change once the problem has, at least, been identified.

The Solution: Partnering with Coastal Surplus Solutions for Bulk Buyers

When you have this much excess inventory, partnering with professionals is the key.

Since there is a need for an aggressive approach, the retailer chose to find a specialist that could connect this excess with bulk buyers and surplus inventory channels.

It partnered with Coastal Surplus Solutions and built a plan with our support for the approach.

The partnership enabled the retailer to access a network of buyers interested in large lots of apparel. Since we source surplus goods for individuals or businesses, we can easily approach this and distribute the excess.

This speeds up the process of moving the excess, and work on reducing costs.

How did we assist the retailer?

We helped identify how items could be bundled. We did it by considering how slow-moving SKUs could attractive bulk buyers for liquidation lots.
Leveraged our expertise and made sure to negotiate with secondary market buyers.
Streamlined logistics. This saved costs and minimized the steps in the process.

Our team worked on aligning the best practices in inventory optimization. We did it by following the systems for SKY rationalization and targeted liquidation. Both free up capital and reduce ongoing costs.

The Result: 40% Inventory Reduction in 90 Days

While it didn’t happen in a month or two, the retailer was able to achieve results within three months.

They liquidated 40% of their stagnant inventory, which is about $80k reduction in excess stock. This rapid turnaround improved their cash flow and how they could invest in new inventory.

While there is still inventory being held, it reduced waste and handled expenses. It allowed the business to refocus on high-performing and in-demand products.

Our goal was to:

Offer and achieve a dramatic reduction in holding and warehouse costs.
Improve inventory turnover.
Enhance working capital
Work on their ability to respond to market trends and not being withheld by the overstock.

This inventory liquidation success story, along with others document by Crowe LLP, shows how partnership-driven approach can deliver great results.

We help you target inventory reduction and bring strategies that adapt to your issue. In the process, we bring a multimillion-dollar impact on working capital.