How many Septembers have rolled around where you’re looking at a storage room still packed with camping and beach gear you know is going to gather dust for the next six months?
It’s a common struggle for outdoor stores. You need enough stock to capture peak-season sales, but if you over-order, you’re stuck carrying that excess stock until the seasons change again.
The solution is strategic off-season inventory planning, but this tactic is far easier said than done. How can you plan your seasonal inventory more strategically, right-size your orders, and optimize cash flow in your store?
The seven strategies we'll cover in this post will help you nail your off-season inventory planning and build a sustainable, year-round business.
Off-season inventory planning is the process of managing your stock levels during slower sales periods so you can optimize your cash flow and prepare for peak seasons.
For outdoor retailers, things get a little more complicated. Chances are, you don’t have just one peak season: Every season is a peak for a different category of inventory. When you’re planning off-season inventory, you want to think about making smart decisions about winter gear in July or camping equipment in December, when customer demand is low but planning opportunities are high.
Before we dig into our best strategies for off-season inventory planning, let’s take a closer look at some of the unique inventory challenges outdoor stores face:
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These unique challenges, combined with the seasonal nature of the business, result in expensive mistakes for many outdoor stores. Dead stock ties up cash and costs you money in the form of storage fees and opportunity costs, but insufficient stock during peak seasons means missed sales and frustrated customers.
So, what’s the answer?
With this context in mind, let’s explore our top tips for getting off-season inventory planning right in your store.
The number one way to plan your off-season inventory is to take a look at your historical sales data. Sales history is the best predictor of future demand — you just need to know how to read it.
Start by pulling two to three years of sales data for each of your product categories and look for consistent patterns. Which hiking boots sell best in March versus September? When do customers start buying winter gear? The answers to these questions are crucial in setting yourself up for success with seasonal inventory planning.
Calculate seasonal indices by dividing each month's sales by your monthly average, then multiplying by 100. A March index of 150 means that month typically generates 50% more sales than your monthly average. These indices become your baseline for inventory planning.
Use this analysis to set realistic inventory targets. If camping gear historically peaks in May with an index of 200, you know you'll need roughly double your average monthly stock on hand by April.
Pro tip: Don't ignore external factors that can skew your data. Economic conditions, local events, and even your own promotional calendar all impact sales patterns.
A good rule of thumb to follow is the 80/20 rule. This rule indicates that 20% of your products typically generate 80% of your revenue each season. Stock these proven bestsellers aggressively, but take a more conservative approach to stocking other products. Buy just enough to test market demand without risking significant capital. Ultimately, you’d rather miss a few sales on new products than get stuck with a storage room full of dead stock.
Related Read: ANSWERED: Are Outdoor Stores Profitable?
When you’re stocking conservatively, you want to think about your reorder potential. How easy will it be to restock if your conservative purchase sells out quickly? Build reorder opportunities into your vendor relationships. Negotiate agreements that let you place additional orders mid-season if a new product takes off. Many suppliers will guarantee inventory availability for 60–90 days if you commit to initial minimum orders.
You have to balance opportunity with risk. Yes, you might miss some sales by being conservative, but you'll avoid the much larger problem of dead stock eating up cash and storage space.
One of the keys to selling off-season inventory is a strong markdown strategy. But remember: Your markdown strategy shouldn’t be a snap decision. Instead, you need to plan your discount schedule when you're placing orders, not when you're staring at a room full of unsold merchandise.
Your best bet with marking products down is to implement a tiered approach:
These percentages are a good starting point, but the actual figures are less important than the pattern itself. Customers will learn your markdown patterns and plan their end-of-season buys accordingly, so once you set a markdown strategy, try to stay consistent.
Related Read: Retail Customer Loyalty Program: 10 Ideas for Outdoor Stores
The biggest mistake outdoor retailers make is holding onto seasonal inventory too long, hoping for full-price sales that rarely come. That ski jacket marked down 25% in April might sell at 40% off in May, but it definitely won't sell at full price until next December (assuming it's even still in style).
Pro tip: Calculate the break-even point where markdown revenue exceeds storage costs. Sometimes, taking a 50% loss now beats the storage cost of carrying that inventory for another year.
Many retailers underestimate the cost of holding inventory. Carrying costs include everything from warehouse rent to insurance, labor moving the products, and the opportunity cost of wasted space on stock that’s not selling.
A common rule of thumb is that carrying costs equal 20–25% of inventory value annually. So that $10,000 worth of off-season camping gear costs you roughly $2,000–$2,500 per year to hold onto. Suddenly, aggressive end-of-season markdowns start looking smarter than just waiting until next year.
Pro tip: Consider off-site storage for bulky seasonal items, but include transportation costs in your calculations. Some retailers find it cheaper to rent additional space seasonally rather than maintain year-round storage for peak inventory needs.
Your vendor relationships can make or break your off-season inventory strategy. Most suppliers understand the seasonal nature of outdoor retail and will work with you if you ask the right questions and negotiate strategically.
Related Read: Outdoor Store Point of Sale Software: 7 Must-Have Features [+ 3 Top Providers]
You just have to know what to ask:
You may also want to consider drop-shipping for specialty or slow-moving items. This method allows you to offer a broader product selection without inventory investment, though you'll sacrifice some margin and control over fulfillment.
As an outdoor store owner, you know the key to keeping your lights on is generating consistent revenue from seasonal categories when they’re at their peak. If you can extend the selling season for a category beyond traditional peak months, keeping your profit margins high will be easier than ever.
One way you can accomplish this feat is through retail marketing strategies like merchandising and bundling. Bundle off-season items with current products. Sell snow gear maintenance kits during summer, or include a gear storage bag with tent purchases. Customers appreciate the value, and you move inventory without deep discounts.
You might also explore "gear prep" campaigns months before peak season. For example, market ski tuning services in October or promote hiking boot conditioning in February. Position these as essential preparation for serious outdoorspeople rather than a ploy to snag some early sales.
Another option you might consider is to offer gear storage services for customers. Many outdoor enthusiasts lack space to properly store the equipment they need for their favorite seasonal sports. This approach can be particularly lucrative in urban markets where residential storage space is at a premium.
The right technology makes all the difference when it comes to mastering off-season inventory planning. A modern point of sale (POS) system can automate much of the data analysis you need, turning guesswork into strategic planning.
Here's how the right POS system can help with your inventory planning:
The goal is to get better data so you can make more informed decisions. When your system automatically flags that ski jacket sales are 30% behind last year's pace, you can take action before you're stuck with a warehouse full of unsold inventory.
Strategic off-season inventory planning is one of the best ways to set your outdoor store up for success. When you follow the seven strategies outlined in this post, you can optimize your cash flow, keep dead stock to a minimum, and build better relationships with your suppliers. But without the right tools and technology, implementing these strategies will be a headache at best.
If you want to make the best decisions regarding your seasonal inventory and off-season products, you need access to the right data at the right time. A modern point of sale solution, like Rain POS, can help.
Ready to transform your inventory management? Build and price your ideal outdoor store point of sale system with Rain POS and get the insights you need to optimize your off-season inventory planning.