Inventory Management for Small Grocery Stores: 3 Must-Have Tools

Small basket sizes. Low customer retention. Frequent stockout. Profit-killing spoilage.

These are all symptoms of one underlying problem: an inadequate inventory management strategy.

Keeping the perfect amount of inventory on your shelves and in your coolers is one of the most challenging — but most important — parts of running a grocery store. If you understock, you’ll lose sales and customer trust to frequent stockouts. If you overstock, you’ll face cash flow issues and lose money to wilted produce and spoiled milk.

As you add more SKUs and increase your grocery store’s turnover rate, it’s nearly impossible to strike this balance without the right tools.

In this blog, we’ll explore everything you need to manage inventory in your small grocery store like a pro — including tools to look for and the providers who offer them.

Grocery Store Inventory Management Tools 101

Still organizing invoices in a filing cabinet and tracking stock levels in a spreadsheet? This manual approach can take up to 10 hours per week — plus lead to costly errors if you order the wrong products in the right amounts.

That’s why we recommend moving to a tech-forward inventory management approach. Let’s look at the three tools that belong in your grocery store toolbox.

1. POS Software With Inventory Management

Step one is to upgrade your store’s basic cash register to a modern grocery point of sale (POS) solution. This tool includes a suite of built-in inventory management features to help you track stock levels, handle vendors, and simplify the reordering process.

Let’s look at a few must-haves:

• Real-time inventory tracking: Access your inventory data from anywhere, at any time. Since your POS system and inventory management software are one consolidated tool, they communicate constantly. Every time you make a sale, the item is automatically deducted from your inventory records.
• Vendor management: Keep track of your grocery store’s suppliers, their wholesale prices, and their product quality. You can even scan invoices to reduce manual entry when a new shipment arrives.
• Low-stock notifications: Never run out of your customers’ pantry staples. When stock levels drop below a certain threshold, your POS system will send a notification just in time for you to place a new order.
• Integrated purchase orders: Ditch the complicated paperwork and create purchase orders directly in your POS system. This saves time and cuts down on error-prone manual data entry.
• Shrinkage tracking: Stop losing money to empty shelves and spoiled produce. Your POS system should help you spot shrinkage from spoilage, shoplifting, or breakage.
• Reporting and analytics: Make data-driven decisions about which products to stock more of, and which to discount or discontinue. For example, POS reports can help you forecast product demand, adjust to seasonal shopping behavior changes, and make smarter pricing decisions.

Choosing integrated POS and inventory management software means that you’ll only have to learn and use one system for everything in your grocery store — from checking out customers to creating purchase orders.

Related Read: How To Use Your POS To Track Department Profitability (Produce vs. Frozen vs. Deli)

2. Barcode Scanners

Barcode scanners are a grocer’s best friend.

At checkout, they help cashiers ring up customers’ items quickly and accurately — ensuring the inventory is actually deducted from your stock levels. On the sales floor, they help with regular cycle counts and new inventory receiving.

For example, instead of counting all of the boxes of pasta on your shelves by hand, you can scan each box. This makes it quicker and easier to keep correct counts of different SKUs: 24 Barilla bowtie, 12 private-label penne, and so on.

Barcode scanners also help you receive new inventory. Sometimes, suppliers make mistakes — they’ll send the wrong number of units or send the wrong SKUs. Scanning inventory with a handheld barcode scanner that connects to your POS system allows you to compare what you received to what you actually ordered. This helps you spot discrepancies and correct them before they turn into stockouts and spoilage.

Related Read: Mobile Barcode Scanner for Inventory Management: 4 Picks

3. A Deli Scale and Label Printer

Your grocery store’s deli and butcher counters present a different challenge. These departments deal with highly perishable products that are tracked and sold by weight — which means you’ll need a different, tailored approach.

That’s where a deli scale with a printer comes in.

With this tool, you can cut meat on demand for your customers, weigh it, package it, and generate a custom barcode label that includes the item type, exact weight, and price. When it’s time to check out, your cashier simply has to scan the barcode, and your POS will charge the customer the right price and automatically adjust your inventory records to reflect the sale.

To make sure your deli and butcher employees, cashiers, and customers all benefit from a deli scale, choose one that integrates seamlessly with your grocery store’s POS and inventory management system.

Small Grocery Store Inventory Management Tools: 3 Best Providers

We’ve covered the basics — now, let’s talk next steps. Navigating the software world can be intimidating, so we’ve created this list of the best inventory management tools for small grocers. Let’s take a look.

1. Markt POS: Best for Specialty Grocers

Markt POS is a tailored software solution for small grocery stores, butcher shops, seafood markets, and natural food stores. It includes powerful inventory management features for catch-weight items like meat and fish, cloud-based access for remote inventory monitoring, and user-friendly reporting and analytics.

Markt POS integrates with most commercial deli scales and barcode scanners for easy weight-based sales, simple checkouts, and faster inventory counts. Along with all the right inventory tools, Markt POS offers marketing features like a built-in loyalty program and SMS messaging.

Explore our flexible pricing options for local markets.

2. IT Retail: Best for Full-Scale Grocers

IT Retail is a great option for larger stores, international grocers, and small supermarkets. IT Retail includes a full range of inventory management and reporting features designed to save you time and maintain the perfect balance of stock.

IT Retail offers cloud-based access, real-time reporting, deli scale integration, and an unlimited SKU database. It also integrates with popular e-commerce platforms like Instacart for easier online sales and inventory tracking.

Use IT Retail’s Build and Price tool to get a custom quote for your grocery store.

3. Square: Best for Basics

On a tight budget? Don’t need the bells and whistles to manage your small grocery store’s inventory? Square might be a solid option.

Square is a popular POS provider serving retailers in all industries. Square’s biggest strength is the user-friendliness and simplicity of its system. You can easily ring up customers, track inventory levels, and check sales with minimal training and hassle.

Square isn’t specifically designed for grocery stores, but its affordable starter pricing plans make it an attractive option for new, small retailers.

Master Inventory Management in Your Small Grocery Store With Markt POS

When it comes to managing your grocery store’s inventory, you can’t go wrong with Markt POS. Our software is specifically designed for independent grocers like you. Along with all the features you need to stop stockout and minimize spoilage, it includes 24/7 support to help you get the most out of your new POS system.

See Markt POS’ inventory management, marketing, and reporting features in action by scheduling your live, personalized demo today!