Retailers have made progress—but the cost of inventory distortion remains staggering. According to IHL Group’s 2025 study, global inefficiencies still consume the equivalent of an entire nation’s GDP each year. The issue isn’t a lack of technology—it’s fragmented planning.

Despite improvement from 10.4% to 6.5% of retail sales, disjointed decisions continue to create out-of-stocks, overstocks, and markdowns that drain profitability. The consequences ripple across every function—from store operations and supply chain to manufacturing and vendor coordination.

Yet amid the volatility, leaders are proving it’s solvable. Retailers achieving 95%+ inventory accuracy share a common formula: unified data foundations, AI-driven forecasting, and continuous scenario planning. They’re turning fragmentation into foresight—and margin loss into measurable growth.

The anatomy of this $1.73 trillion crisis is clear. The strategies to solve it are even clearer.