What is a potential consequence of mismanaging seasonal buying?

Mismanaging seasonal buying can lead to stockouts during peak demand periods, which is a significant concern for retailers. When buyers fail to accurately forecast demand or order sufficient inventory in anticipation of seasonal spikes, they risk running out of stock just when customers are ready to purchase. This not only affects immediate sales but can also damage customer loyalty, as shoppers may turn to competitors who can fulfill their needs.

During these critical times, the inability to provide products that are in high demand can create a perception of unreliability in a brand. Additionally, stockouts can disrupt planned promotions and marketing strategies intended to drive sales during peak seasons, further compounding lost revenue opportunities. Thus, the correct understanding of inventory management and seasonal trends is essential for maintaining a stable supply and meeting customer expectations effectively.