Retailers are managing inventory levels and even though economy is improving, jobs and housing are two key indicators affecting the consumer. Experts don’t think retailers can expect large increases in consumer spending until there is improvement in jobs and housing.
With a slight growth in spending during the holiday season of 2009, retailers saw a 2.9 percent increase in sales in December. (Source: Thomson Reuters.)
0.7% Increase in sales at department stores
4.7% Increase at apparel stores
5.3 % Discount stores increase
In 2009, luxury retailers had up to 30 percent declines in sales and profitability. These poor sales figures mean larger discounts for consumers this year.
Some experts say they expect to see declines in sales this year similar to those in 2009, which were as great as 20 percent.
As a result of the financial crisis in 2008, retailers have learned to manage their inventory more efficiently in order to cut back on costs. Offering less merchandise on the floor prevents retailers from having massive discounts.
Many suppliers have realized that invoice factoring can assist them when they get department store orders for their apparel items, because they can use the tactic to make the items, pay employees, and stay in business because they can then keep selling and getting orders from other retailers.
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