Summer Retail Sales Low And Inventory Tracking a Problem

Retail sales fell in June overall, but not every segment of retail suffered. Sales at clothing and accessories stores decreased 0.1% in June and was unchanged in May. The decrease has been attributed to decreased pricing on products and low availability of inventory. Sporting goods stores also decreased in sales, by 0.6%. Online sales increased 0.4%, but consumers are being hit with emails that tell them the items they ordered online are being cancelled due to lack of availability. Retailers are struggling to get their single pool stock and sight into inventory location and availability in their reporting systems correct. Having a single pool stock in theory should make products available to any customer regardless of their shopping channel, and cut the amount of markdowns. But tight processes and reporting is needed to ensure stock is accurately reported and data collected is unified across all channels. Consumers are purchasing online, but then getting the email that some of the products are not available, but then another email asking to rate their purchases as if all the items were available – a telltale sign that data integration is not happening and a practice that leaves a bad taste in the mouths of customers. Segments that had decent sales at brick and mortar stores in June include general merchandise with 0.4% increases, building materials and supplies up 5%, and electronics and furniture both up 1%. This is in time for back-to-school college shopping that is coming in July and August. An uptick in college student enrollment is getting retailers to expect a record breaking back-to-school season. Combined back-to-school and back-to-college spending is expected to reach $83.6 billion, up more than 10% from last year. College consumers plan to spend $12.8 billion on electronics, $8 billion on clothing, $7.5 billion on snacks and food, and $4.5 billion on personal care items. Where do parents plan to buy? 57% say they will shop at department stores, 54% at discount stores and 46% at clothing stores and online.

Sources: Chain Store Age, NRF, Retail Weekly