One of the most successful retail sales events in Australia is stocktaking sales. It turns slow-moving stock into cash. Shoppers expect these sales and are on the lookout for bargains. So why not hold a clearance event like many others do?

What is a Stocktake Sale?

A stocktake sale is a special promotion held right after your annual stocktake to move excess, slow-moving, or outdated stock. Retailers across Australia now are using these sales to turn unsellable inventory into cash. As you have just finished your stocktake, you know much of the stock that needs to go and now is the perfect time to run a sale to bring in some extra money for your business.

How Do You Choose Which Stock to Discount?

Use your stocktake results and your Point of Sale (POS) system to decide which items to discount. Only include products that have a clear, data-backed reason to go. For example, if your POS reports show a certain candle brand still sells well at full price, don’t put it on sale. I have discussed this in detail here.

Many retailers also use stocktake sales to clear out discontinued products that suppliers no longer make. These items can leave empty spots in your displays.

When it comes to pricing, keep things simple and clear. Use offers like "Clearance Books from $5" or "Buy Two Reduced Items for a Further 10% Off." A "$10 Bin" will encourage more impulse buys than complicated discounts.

Under the Australian Consumer Law, be careful when using the popular 'was/now' pricing discount method. Currently, most say you can only use it if it was in the Australian Consumer Law, which has rules about 'was/now' pricing. Usually, you can only use this method if the item was sold at a higher price in your shop within the last three months. To be safe, I am suggesting most of my clients to avoid using the 'was/now' pricing and simply say, for example, 'down to $10.' Always clearly display the exact start and finish dates on all your marketing materials. 

Furthermore, if your clearance stock is highly limited, you should add "While Stocks Last" to your signs to increase demand.

In-store signage must be bright, consistent, and strategically placed at eye level to capture your customers' attention. I like a red sign as it means to a consumer stop. I do not like yellow as studies show older people see it as dirty. In any case make sure your in-store signs are bright, consistent, and placed at eye level to catch customers' attention.

Many retailers put signs at the front of their shops to attract passersby.

Now after the sale ends, review your results. Also, you should compare your normal trading period against the sale window by looking at these four vital KPIs:

• Track how many slow-moving items you managed to clear out.
• Count the exact amount of working cash you recovered by selling off those obsolete items.
• Check how much profit you gave up to free up space in your store. Looking at that stock is a clear learning experience.
• Review the display areas you freed up.

Conclusion: Refreshing Your Retail Store for 2026

A well-planned post-stocktake sale is one of the best ways to clear old stock, free up cash, and get your store ready for the new season. If you have not moved now do it now while the stocktake season is still on.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

As a retailer, growing your business involves getting more sales, which you can only do from your existing customers or by attracting new customers.

Now, if you talk to a banker, they speak about the four key strategies you can use to expand your business in your shop.

1. Increase Penetration of Your Existing Market

This involves trying to sell more of your current products to your existing customers. Some tactics include:

• Offering discounts or promotions: Run special deals or loyalty programs to incentivise customers to make additional purchases.
• Optimising inventory and displays: Carefully manage which products you stock and how you display them in-store to promote increased sales.
• Enhancing in-store presence: With improved information and understanding, Open Source Rental Software empowers you to run your business more effectively.
• Signage: Utilise high-quality displays, signage, and interactive retail displays to increase product visibility and encourage purchases.

For example, a newsagent could increase the variety of greeting cards or improve their card display area to catch more eyes.

Finding small but impactful ways to get your current customers to spend more with you is critical. Analyse what draws them in already, and build on that. With creativity, you can often boost sales from your existing base without dramatic changes.

2. Develop Your Market by Reaching New Customers

Look for new customer segments that could be interested in your current products. Some ideas:

• Target nearby businesses: If you run a retail store, connect with local companies to sell your products to them. Set up meetings and introduce your offerings.

• Sell online: Create a website or list your products on online marketplaces to reach new geographic areas and demographics.

The goal is to identify pockets of potential new customers in your local area. Think about who else could benefit from or appreciate your products. Get creative with connecting with them through outreach, digital channels, or specialty offerings. The easiest wins often come from expanding to adjacent groups with a reason to buy what you sell.

3. Expand Your Product Lines for Existing Customers

Continuously evaluate opportunities to introduce new products or services that complement your existing offerings and appeal to your current customers. Continually test and introduce new complementary products to its existing range. 

Examples:

• A newsagent could begin selling party supplies, such as invitations, napkins, and plates.

• A clothing shop could add accessories like handbags and jewellery.

4. Diversify into New Markets and Products

This higher-risk strategy moves your business into entirely new spaces.

Example:

• A newsagent is expanding its range to include luxury cosmetics and toiletries.

• A client of mine in his newsagency added alcohol.

Ensure ample research before diving into unknown territory and have an exit strategy.

Conclusion

A strategic mix of these four approaches can help small retailers expand their customer base and offerings for sustainable growth. Knowing your strengths and limitations and making incremental moves rather than giant leaps into the unknown is key.