Thursday, December 20, 2007

Retailers Adapting New Strategy on Inventory

During the mid-season holidays, retailers are finding that they need to establish new strategies on inventories because their inventory may not support markdowns.

Leaner stockrooms mean less incentive to slash prices to get goods out the door. Expect fewer late-season sales touting 50% or more off original purchase prices. Not that some big sales won't be found.

Of course, the less an item is predicted to grow sales, the more likely retailers will slash prices. Jewelry, which Retail Forward predicts will grow sales just 1% over 2006, qualifies this year. And furniture, expected to see a 1% drop in sales, could be a strong markdown despite not usually being associated with gift-giving. -- from Forbes article, 11/29/07

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