Sep 15, 2008

Balancing inventoryBy Sherry SlaterJournalGazette.net

Pity the retailer.

If he doesn’t have it, he can’t sell it. But if he orders it and nobody buys it, that’s even worse.

Inventory planning can be challenging in any financial climate. But when consumer spending dries up, small retailers are forced to make even savvier decisions about what and how much to order. They simply can’t afford to sink money into inventory that isn’t selling.

Sue McBride, owner of Roberts Shoes in Statewood Plaza, has winnowed her inventory to reflect sales that have fallen 6 percent since last year.

“I think when you see your volume going down, you have no choice but to cut down on your buying,” she said.

McBride’s fall orders focus on the store’s best-selling brands, including Clark, Naturalizer, SAS, Florsheim, Sperry Top-Sider and Keds. She ordered about 20 percent fewer pairs of shoes for this fall than last, cutting from about 40 lines to about 30.

An August survey of 189 retailers found only 14 percent plan to add to their inventories while 26 percent plan reductions, said William Dunkelberg, chief economist for the National Federation of Independent Business.

The Washington, D.C.-based non-profit small-business association last week released members’ inventory plans, which are considered a reflection of business owners’ confidence in the economy.

What they’re doing is selling items already in stock but not reordering, Dunkelberg said.

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