Inventory Management and Profitability of Retail Businesses in Onitsha Main Market, Anambra State

This research examines the relationship between inventory management practices and profitability among retail businesses in Onitsha Main Market, one of West Africa's largest commercial markets, located in Anambra State, South East Nigeria. Effective inventory management is considered fundamental to retail sector profitability, influencing cash flow cycles, stockout risks, and customer service levels. This study employs a descriptive survey design with data collected from 120 retail business owners and managers through structured questionnaires. Data were analysed using descriptive statistics and simple regression. The study assesses four inventory management dimensions: stock recording accuracy, reorder point management, supplier lead time management, and physical stock verification. Findings indicate that stock recording accuracy and reorder point management have the most direct positive impacts on profit margins and inventory turnover ratios. A significant proportion of respondents reported reliance on informal, non-digitised stock management methods, which correlates with higher rates of inventory discrepancies and stockouts. Supplier lead time variability was identified as a key external challenge beyond the immediate control of retailers, particularly during festive trading periods. The study recommends the adoption of basic inventory management software, regular stock reconciliation practices, and supplier negotiation strategies tailored to the market's high-volume trading environment. This research provides practical management insights for Onitsha's thriving retail sector. Keywords: inventory management, profitability, retail business, Onitsha Main Market, Anambra State.