Definition
Channel Check
A research method involving direct contact with a company's distribution channels to assess business performance.
Channel checks involve systematically contacting retailers, distributors, suppliers, or customers to gather intelligence about a company's sales trends, inventory levels, and market position. Investors use channel checks to verify or challenge management guidance and consensus estimates. For example, an analyst might call electronics retailers to gauge demand for a new product launch before earnings. Channel checks can be conducted via expert networks, direct outreach, or specialized research firms.