Thursday, September 24, 2009

The Debts of the Spenders: 2009 US Retail Import Volume Projected to be Lowest Since 2003

This data comes fresh from a trade association so I trust their numbers. The projections are based on August import volume. Cyclically, summer is the time for US retailers to place their orders w/overseas factories.

The report is bearish as it projects volume to be low through January. In other words, a slow holiday sales season. Store buyers and supply chain managers have been focusing on trimming costs instead of expanding. Cost cutting also means margin squeezing on the supplier side.

Nothing that industry folk and savvy investors have known about for weeks now - if not months. Still, I wonder how much longer an equity rally in the retail sector can last.
blog comments powered by Disqus

Blog Archive