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The $1.73 Trillion Wake-Up Call: Why Retail Planning Must Change

IHL Group’s 2025 study exposes the hidden cost of fragmented planning – and why unified platforms are the only solution

While retailers pour billions into digital transformation, a staggering $1.73 trillion vanishes annually through inventory distortion – an amount equivalent to South Korea’s entire GDP. The culprit isn’t lack of technology; it’s the fundamental breakdown between planning systems that don’t communicate.

The anatomy reveals a crisis of coordination: $1.157 trillion lost to out-of-stocks when customers leave empty-handed, and $572 billion to overstocks requiring deep discounts. At 6.5% of global retail sales, this represents missed opportunities that could fund entire economies.

The path forward is equally clear. This new IHL study reveals what’s really driving inventory distortion and, more importantly, which strategies are proving effective in restoring accuracy, availability, and profitability.

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This new IHL study reveals what’s really driving overstocks and out-of-stocks, and which strategies are proving effective in restoring accuracy, availability, and profitability.

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The Board Advantage: Top-performing retailers achieving 95%+ inventory accuracy share three critical capabilities that Board delivers: unified data platforms, integrated AI-driven forecasting, and continuous scenario planning. While competitors struggle with siloed systems, Board customers transform planning fragmentation into competitive advantage.