Retailers Poised To Offer Significant Discounts In The New Year

The business inventory to sales ratio and retail inventory to sales ratio are above or near levels last seen prior to the last recession. In an article in the Wall Street Journal this morning it was noted, “Sales at physical stores fell 6.7% over the most recent weekend, while traffic declined 10.4%, according to RetailNext, which collects data through analytics software it provides to retailers. That is worse than the 5.8% decline in sales and the 8% drop in traffic recorded from Nov. 1 through Dec. 14.” This build up in inventory at the retail level as well as in the pipeline, likely results in brick and mortar retailers offering significant discounts after Christmas.

From The Blog of HORAN Capital Advisors

The major challenge for brick and mortar retailers is the consumer’s desire to shop online. Data through the third quarter reflects the growth in online purchases.