‘As bad as we’ve had it’: retailers cut stock as shoppers strike
Stores are moving to avoid a blowout in inventories in the expectation of tougher trading in the lead-up to Christmas as cost-of-living pressures bite.
NAB data confirms anecdotal reports that retailers are cancelling or scaling back orders.
There could be $30 billion to $35 billion in stock that is ageing or obsolete nationally.
Consumers are increasingly taking advantage of sales to stretch the budget.
Retailers are slashing orders for new stock in the lead-up to the festive season to avoid a blowout in inventories as consumers tighten the purse strings.
Forward orders for retailers and wholesalers have been in deeply negative territory for the past two months, according to NAB’s monthly business survey, indicating most retailers expect demand to fall over the next few quarters as cost-of-living pressures escalate.
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Sue Mitchell writes the fortnightly Window Shopping column for the Financial Review and has covered retailing for over 30 years. Connect with Sue on Twitter. Email Sue at smitchell2045@gmail.com
