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Inventory Buildup Continues in Q3

Inventory buildup at retailers heading into the holdays

In this article in the International Business Times by Avaneesh Pandey, she points out how inventory levels are rising heading into the critical holiday shopping period.  Just in Q3 in fact, she says that inventory levels at American businesses have grown by $56.8 billion.  She goes on to quote a Macquarie Research report suggesting specialty stores and apparel companies are currently experiencing “a build-up in inventories beyond the natural increase ahead of the holidays”.  The same report also named 10 companies where inventory is growing faster than sales, including Lululemon Athletica, Nike Inc., Under Armour Inc. and VF Corp.

This situation will have very positive implications for consumers this holiday, as the markdowns are likely to happen early and be deep.  Beyond that, if consumers don't show up with their wallets open this holiday season, we are going to see a tidal wave of product hitting the secondary market at year end and in early January.

Starting accumulating capital now so you are in position to take advantage of these upcoming buying opportunities.

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