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www.IndependentRetailer.com COVER STORY Handling
Holiday Excess continued from page 112
fi nd those shoppers looking for deals. Perfect for those inde- pendent retailers is the online marketplace,
www.LittleInde-
pendent.com, which provides small storefront owners a wider audience for their sale items, in- creasing the chance of a sale. 4) If all else fails, donate
excess items to charity. While you are in the business of mak- ing money, supporting a good cause is a better choice than carrying a worthless asset on the books. As
Inc.com explains, “You’ll benefi t the organiza- tions you donate to and, by removing the items from your shelves, generate a tax deduc- tion as well.” According to the fi fth annual
Compass Survey of CFOs, the challenges of merchandising were no different for the 2011 holiday season, especially with the added pressure of cost in- fl ation. As BDO, a retail and consumer product industry advisor, highlights in the spon- sored survey, “A vast majority of retail CFOs report they ei- ther increased (31 percent) or maintained (51 percent) inven- tory levels for the holidays, compared to 2010. Bets are in on consumer behavior for the holidays, all that’s left is to wait for the dice to fall.” However, economic turmoil, increasing gas prices, and tight budgets have led most U.S. consumers to continue resisting retailer
sales efforts. They’d rather keep the cash than spend it. The Wall Street Journal reports, “A survey of 1,000 U.S. consum- ers conducted by consultant AlixPartners LLP in September found that 41 percent planned on spending less on holiday shopping this year, up from the 31 percent of respondents who answered that way a year ago.” As a result, retailers may be faced with price cuts and ex- cess inventory, all of which will continue to challenge retail- ers’ bottom lines, unless they are prepared to move product more creatively. ■
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