Emerald Business Systems Blog


Discounting sets ‘grim tone’ for holiday retail

Posted in Retail,Sustainable/Green by ebs4pos on October 30, 2009

American retail chains panicked last holiday season as they stared at overstocked shelves and wondered, “How will we sell all this stuff?” Their response to the collapse of the economy—namely, to markdown everything in sight and cross their fingers—was a last-minute act of desperation. Because they spent the past year ruminating about worst-case scenarios, however, many retailers now face a new problem as the holidays actually approach, says Stevan Buxbaum, executive vice president of Agoura Hills, Calif.-based Buxbaum Group, the consulting and turnaround investment firm.

“Retailers were so nervous they over-constricted their inventories,” explains Buxbaum, who looks for comparable store sales to be in the flat to negative 1 percent range for the season. “They are now scrambling to stock up. The problem is that we have a worldwide supply chain. Much of the inventory comes from Asia and can sit on a boat for up to six weeks before it gets here. Beefing up inventories in time for the holiday season will be virtually impossible.”

via Marketing | Report: Discounting sets ‘grim tone’ for holiday retail | Retail Customer Experience.

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