AT and Diwali demand spikes are predictable. Yet most retailers enter them understocked at their best stores and overstocked at their worst.
For jewellery retailers, events like Akshaya Tritiya and Diwali are not just sales periods.
They are high-stakes inventory moments.
Demand surges.
Footfall increases.
Conversion improves.
And yet, despite this predictability, the same problem repeats every year:
π High-performing stores run out of stock
π Low-performing stores sit on excess inventory
This is not a demand problem.
It is a planning problem.
π― 1. Seasonal Demand is Predictable β But Allocation Isnβt
Unlike regular retail cycles, event demand is not random.
Retailers already know:
When the spike will happen
Which categories will move
Which stores typically perform better
And still, allocation often follows:
Historical averages
Uniform distribution
Last-minute adjustments
These methods are not designed for peak demand scenarios.
β οΈ 2. Regular Replenishment Logic Fails During Events
In normal periods, replenishment works like this:
Monitor sales
Refill based on consumption
Adjust gradually
But during events:
β There is no time to react
β Demand moves faster than replenishment cycles
β Stockouts happen before corrections can be made
What works in steady-state retail does not work in compressed, high-intensity periods.
π 3. The Core Mistake: Treating All Stores Equally
Most allocation plans assume:
π All stores deserve similar stock depth
But reality is very different.
During events:
Top stores capture disproportionate demand
Mid-tier stores behave unpredictably
Low-performing stores often remain slow
Uniform allocation leads to:
Missed sales in top stores
Excess stock in weaker stores
π¦ 4. Event Planning Requires Pre-Allocation, Not Reaction
By the time the event begins:
π The allocation decision is already locked in
There is limited ability to:
Move stock
Rebalance quickly
Correct mistakes
This makes pre-event allocation the most critical decision point.
π 5. SKU-Level Planning Becomes Critical
During events, not all products behave the same.
Some SKUs:
β Sell rapidly
β Need deeper allocation
Others:
β Move slowly
β Should be limited in exposure
Planning at category level is not enough.
π The real decisions must happen at SKU level
π° 6. The Hidden Cost of Getting It Wrong
Poor event allocation creates a double loss:
- Lost Sales
Best stores run out of high-demand SKUs - Locked Capital
Slow stores hold inventory that doesnβt move
After the event:
Unsold stock turns into dead stock
Discounting becomes necessary
Margins get compressed
π 7. What High-Performing Retailers Do Differently
Retailers who get event stocking right:
β Prioritise top-performing stores
β Allocate depth based on demand potential
β Plan SKU-level distribution in advance
β Reduce exposure in low-performing locations
They donβt aim for balance.
They aim for performance-driven allocation.
π§ 8. Event Stocking is a Different System
Seasonal events are not just βhigher sales daysβ.
They require:
Faster decision cycles
Better demand anticipation
Structured allocation logic
In short:
π A different operating approach
Not just more inventory.
π§ Final Thought
Akshaya Tritiya and Diwali are predictable.
The mistakes retailers make during them are also predictable.
What changes outcomes is not demand β
but how inventory is positioned before demand arrives.
Because in event retail:
π You donβt win by reacting faster
π You win by planning better