Inventory Planner Survey Reveals Impact on Peak Trading
- Two-thirds of retailers expect peak trading to be hit ahead of Christmas due to interest rates and inflation.
- 41% of retailers plan to buy less stock for festive shoppers due to rate rises.
- 59% of merchants lowering margins instead of passing on full cost of rising prices to customers.
- 60% concerned about losing market share if they pass on full cost of price increases.
- 49% have a precarious cash flow position and 42% face frequent cash flow issues.
- 45% wrote off stock in the past year, with 29% dumping up to 10%.
- 67% of retailers plan to discount products on Black Friday.
- 65% have excess stock, a major concern for 48% of sellers.
- 37% struggle to buy the right amount of stock and 45% need to reduce inventory costs.
- 41% ran out of stock in some lines, resulting in revenue loss.
- 19% recommend Inventory Planner software for better stock forecasting.
A recent survey by Inventory Planner reveals that retailers are facing a challenging holiday season due to the combined effects of rising interest rates and inflation. Over two-thirds of merchants anticipate a negative impact on peak trading, with 41% planning to buy less stock for festive shoppers. Inflation has led 59% to lower margins rather than passing on full costs to customers. Six out of ten retailers are sensitive to ‘greedflation’ accusations and 60% worry about losing market share. The survey involved 500 retailers, showing that 70% have been significantly affected by inflation in the past year. Over half (49%) have a precarious cash flow position and 42% face frequent cash flow issues. A third of respondents struggle with managing cash flow effectively. Nearly half (45%) wrote off stock, with 29% disposing of up to 10%. Black Friday discounts are expected from 67% of retailers. Excess stock is a concern for 65%, and 48% fear losing customers if they pass on full price increases. Inventory Planner software assists in automating stock purchasing and demand management for over 2,600 merchants worldwide.
Factuality Level: 8
Factuality Justification: The article provides relevant information about the impact of inflation and interest rates on retailers, citing a survey conducted by Inventory Planner. It includes statistics and quotes from the spokesperson to support its claims. However, it lacks external sources or expert opinions for further validation.
Noise Level: 4
Noise Justification: The article provides relevant information about the challenges faced by retailers due to inflation and interest rates, but it also includes some promotional language for Inventory Planner software. The focus on the company’s product may make the content slightly more noise than necessary.
Financial Relevance: Yes
Financial Markets Impacted: Retailers and their inventory management
Financial Rating Justification: The article discusses the impact of inflation, interest rates, and economic turmoil on retailers’ cash flow, stock purchasing decisions, and inventory management, which are all financial topics related to businesses in the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk