How do supermarkets/grocery stores stock their stores?Do they have to buy everything or do vendors stock them?

Question

What happens if something doesn't sell? Do they return it to vendors or do they have to carry losses? Can you recommend any books/guides for supermarket or grocery store management? What software would you recommend? Thank you.

Answer 1

Are you speaking of big chain stores or small independent operations?

All stores have vendors that supply the perishables on consignment, such as bread, dairy, etc. but the majority of goods are purchased out right or by purchase order with terms.  Some suppliers have to pay stores to display there products on the shelves.

What doesn't sell goes to wholesalers and salvage companies so a store will very seldom take a loss completely.  The other consideration is the advantage of buying over consigning.  You obviously make more of a profit if you bought the products but you tie up your cash flow.  On the otherhand, when consigning, you give up profits over retaining some of your cash flow.  

There are several trade associations online if you want more information.  Just google what you are looking for.

Answer 2

Some products are stocked by vendors. But not a whole lot. Greeting cards, some soda, beer and potatoe chips are stocked by vendors. If something doesn't sell, yes you take it as a loss, though, some companies allow you to send the items back and recieve a credit, especailly if they are damaged items. Here is some software you can check out. http://www.retalix.com/index.cfm?pageid=... http://www.knowledgestorm.com/search/bro...