Retail roundtable: The Grinch who stole retail sales (Part 2 of 3)

Halloween hasn’t arrived yet and already retailers are spooked by what the upcoming holiday season will bring. SmallCapInvestor.com spoke with a panel of experts to gauge just how lackluster this holiday sales season will be, and to gain insight into retailers' strategies and overarching trends. This is part 2 of a 3-part series.

Given soft consumer demand, how much of an emphasis will retailers place on cost management and inventory management compared with prior year cycles?

Reed: “They’re going to watch inventory as much as they can. You’re going to see a lot less inventory this year. But, it looks to me they’re moving beyond inventories and just straight out job cuts.”

Collins: “We’re taking a conservative posture as it relates to building inventories. We want to avoid excessive inventory, so we are being more prudent with our production plans.”

Van Sinderen: “What you saw happen a few months ago is different than what you’re seeing happen today. So, I think it’s ongoing management that you’re constantly modifying. Fall has been surprising for retailers. Even though they’ve been planning inventory fairly conservatively, some have been surprised by how soft business has been. If you were planning your business one way a few months ago, you’re probably planning it even tighter now.”

Gonzalez: “They're going to adjust their inventories too late in the game because they’re such a big machine that can't stop mid-season and change gears. So they're going to cut back on inventory that's going to be reflected in the spring, which is when they're going to do their sales.

“What happens now is that department stores plan their spring buys based on this season's forecasts. If they feel like they're overbought, especially with the . . .

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