Dive Brief:
- Apparel retail chains are moving out of a yearlong struggle to move inventory using discounts that have hurt the bottom line, according to a report by Swiss bank Credit Suisse as detailed by Forbes magazine.
- For the first time since September last year, sales growth is outpacing inventory growth, according to the report, “CS Softlines Industry Inventory Tracker,” released last week.
- Teen retailers and department stores are faring the best, with discount retailers, sporting goods stores, shoe retailers, fashion and outdoor retailers also poised to do better, according to the report. Handbags, children’s clothing, and women’s apparel are still seeing inventory outpacing sales, the report said.
Dive Insight:
Last year’s holiday profits were hammered by the discounts that many retailers found were the only way to get customers through the door and to the checkout. This news is welcome, then, as the holidays approach once again. Teen retailers like Abercrombie & Fitch, Aeropostale, and American Eagle Outfitters in particular have been making major changes to their merchandise and that appears to be paying off.
