Lack of Supply And Increased Demand Frustrating Some Shoppers

by Deidre Woollard (RSS feed)
Oct 9th 2009 at 8:02PM

Last year many stores found themselves stuck with too much inventory and not enough buyers. The resulting fallout led to a series of deep sales and a firm resolve not to let that happen again. This year we are seeing the reverse situation, shoppers with money who are finding less inventory to splurge on. Bloomberg has an interesting piece that suggests that luxury department stores, which have cut back on their orders in order to cope with declining sales, may end up losing customers who are frustrated with the lack of selection.

Retailers aren't exactly itching to stuff their stores. They aren't convinced that the shoppers are ready to storm the doors in droves and are still licking their wounds over the last year's discount days which led to reduced profits all around. They are also hoping that a little lack of supply will stimulate demand and get shoppers in when lines first arrive rather than waiting for discounts. Store executives have to order months in advance and last year's debacle has spooked some strategists. Some analysts suggest that the first stores to go back to the good old days of stuffed aisles may have a leg up on their competition.

Tags: department stores, DepartmentStores, shopping