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A stocktake sale is a special promotion held right after your annual stocktake to move excess, slow-moving, or outdated stock.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.
