EFFECT OF INVENTORY MANAGEMENT ON PERFORMANCE OF RETAIL BUSINESS IN ABUJA, NIGERIA.

Retail businesses in Abuja, Nigeria, face inefficiencies in inventory management, leading to frequent stockouts, spoilage, and reduced profitability amid 34% inflation and 70% informal trade (SMEDAN, 2023). This study examines the impact of inventory management practices—Just-In-Time (JIT), Economic Order Quantity (EOQ), First-In-First-Out (FIFO), and Vendor-Managed Inventory (VMI)—on the performance of retail businesses in Abuja, Nigeria. Employing a descriptive, quantitative design, the study surveyed 384 retailers across food (33.6%), clothing (21.2%), electronics (15.3%), and other sectors (38.4%) from May 1 to June 4, 2025, achieving a 93% response rate (354 valid responses). Using SPSS regression analysis, the findings confirm that JIT reduces stockouts by 20%; EOQ saves 10% costs; FIFO cuts spoilage by 15%; and VMI improves turnover by 15%. Supplier reliability constrains outcomes, with 50% of retailers facing 60% delivery delays due to fuel costs (N1,020/liter, NBS, 2025). The study offers actionable recommendations such as weekly supplier calls and digital tools like Google Sheets to mitigate 30% stockout losses and 20% closures. These findings provide retailers with cost-effective strategies, policymakers with scalable interventions, and academics with a localized framework, strengthening Abuja’s retail sector, which contributes 48% to GDP (SMEDAN, 2023). Keywords: First In First Out, Economic Order Quantity, Just In Time, Vendor Managed Inventory, Spoilage, Stockouts, Turnover.