The supply and demand picture for retailers heading into the holidays is only getting more complicated, says The Wall Street Journal. Best Buy and Dick’s Sporting Goods reported mixed results in the most recent quarter, as part of what Best Buy CEO Corie Barry calls an “uneven and unsettled” consumer market.
That is complicating inventory planning in a sector looking to boost sales even as companies cope with overstocked shelves.
Inventories at Best Buy are down 15% compared with last October, signaling tighter control of stocks, but comparable sales also tumbled 10.4%.
Dick’s inventories were up 35% from a year ago, but the merchant’s sales were also higher, and the company says comparisons to last year’s constrained inventory environment are misleading. Instead, Dick’s says its relatively stronger inventory position at the end of June allowed it to meet robust demand during the back-to-school season.
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