It is true and it has nothing to do with my experience as a customer - quite the opposite in fact... :wink:
Retailers will "show" you that they have something in stock when, in fact, it is the supplier's inventory. This is not unusual. Some retailers do it better than others. Some ringfence stock. Some have better relationships with suppliers. Some make more money for their suppliers. Believe it or not, suppliers and retailers work together to make money, not against each other...
In some cases retailers purchase stock but leave it at the supplier's warehouse too - again, not unusual.
And I'm not saying that retailers should not be investing in stock at all - a significant volume is kept in stock simply because of high volume sales, imports, etc. However, you shouldn't judge a retailer on what they buy and where they keep it, simply on how competitive they are when it gets to successfully satisfying a sale.
Therefore, putting faith in a retailer because they hold stock is a mistake. In some cases the suppliers distribution centre will be nearer to some customers. In most cases you may have no idea where the stock is sourced. Ownership is simply the act of paying for something - nothing to do with where it is physically kept. Supplier A could say "yes, we have that in stock..." and they'd be quite correct. They own stock in Festool's DC in Germany. Meanwhile, supplier B tells you that they can get it delivered from, erm, Germany...
Any retailer who invests in stock when they have the option not to (read the obvious - remain competitive in all respects) is plain daft - stock is a depreciating asset in most cases. The longer you own it the more it owes you. The more susceptible you are to losses due to obsolescence or shifts in market value. It is NOT an investment in your business - it's a necessary evil where you have to do it but it is never, ever, an investment. Money spent on your infrastructure to support NOT buying stock IS an investment. Anything that makes you money IS and investment. Anything that saves you money IS an investment. Selling stock makes you money. Selling stock that you haven't had to purchase makes you MORE money.
So, if Rutlands are selling from supplier stock, this is NOT a good example...