How can I tell if a shoe store’s aged inventory is hiding in the stockroom?

The shop floor is tidy by design. The stockroom tells the truth. Ask to see all of it, including shelves, mezzanines, storage rooms and off-site space. Check how it is organized. A system where boxes are labelled by season and date makes ageing easy to see. A jumble makes it easy to hide.

Pick a sample of boxes from several brands and compare the style codes with the sales history. If a style has not sold recently but appears in the stock list at full cost, ask why. Look for last year’s winter boots, discontinued lines and pairs with odd sizes.

Ask how the owner decides when to mark down, return to the supplier or write off. See whether the policy is followed. If nothing has been written off in years, the stock value on the books may be inflated. Ask your accountant how to adjust for stock that is unlikely to sell at full price. It also helps to ask whether any stock was bought on special terms or is held on consignment, as that changes what you count. Ask staff where old pairs usually end up.

Key takeaways

• Inspect all storage areas, not only the shop floor and the main stockroom.
• Match a sample of style codes with sales history to find items that have stopped selling.
• Ask when stock is marked down or written off, and whether the books reflect it.