Dead Stock Trapped Capital
It is how much cash is stuck in inventory that is not selling at full price — clearance and slow movers.
Formal definition
Dead stock trapped equals the number of clearance or non-moving units multiplied by average wholesale cost per unit.
Why it matters
Dead stock ties up open-to-buy budget and warehouse space; it often ends in deep markdowns or write-offs.
Where you see it
- Inventory aging reports
- Retail merchandising reviews
- Open-to-buy planning
- Liquidation and outlet channels
- Year-end inventory write-downs
Worked example
- Clearance units: 400.
- Average wholesale cost:
- Dead stock trapped = 400 ×
- Interpretation: $4,800 of capital sits in slow or clearance inventory.
How Business metrics calculates it
Clearance units × Average wholesale cost.
Where people fool themselves
Dead stock at wholesale cost is cash. Dead stock at original retail is a feeling. We use cost × units when you enter those fields.
Run it on your own numbers: the Retail & E-Commerce calculator.