On Dec 10, 10:10 am,
Vide...@tcq.net wrote:
>
http://finance.yahoo.com/news/Wholesale-inventories-sales-apf-1379481...
>
> Wholesale inventories, sales plunge in October
> Wholesale inventories plunge in October by largest amount in 7 years;
> sales post record drop
> • Martin Crutsinger, AP Economics Writer
> • Wednesday December 10, 2008, 11:56 am EST
> • Yahoo! Buzz Print
> Related:
> • Abercrombie & Fitch Co., American Apparel, Inc., Aeropostale Inc.
> WASHINGTON (AP) -- Wholesalers cut back on their inventories in
> October by the largest amount since the period following the 2001
> terrorist attacks while they watched their sales plunge by a record
> amount.
>
> Analysts predict more grim news in the months ahead as the current
> recession deepens.
> The Commerce Department reported Wednesday that wholesalers, the
> companies in the supply chain between manufacturers and retailers,
> reduced their inventories by 1.1 percent in October, the biggest
> cutback since a similar drop in inventories in November 2001.
> The inventory decline was much bigger than the 0.2 percent decrease
> economists expected.
> Sales at the wholesale level plunged by 4.1 percent in October, the
> largest decline on record.
> The inventories-to-sales ratio increased to 1.16 in October, up from
> 1.12 in September. That means that it would take wholesalers 1.16
> months to sell off their stockpiles at the current sales pace.
> It was the highest inventory-to-sales ratio since a similar level in
> February 2007 and was another warning signal of potential production
> cutbacks in coming months as businesses try to get their inventories
> back in line with slowing sales.
> The declines in inventories and sales provided further evidence that
> the economy is in a steep recession. Many analysts believe the current
> recession, which has already lasted 12 months, will drag on until the
> middle of next year. If it lasts past April, it will become the
> longest recession in the post World War II period, surpassing
> recessions in the mid-1970s and early 1980s that both lasted 16
> months.
> The financial crisis has taken its toll on Main Street with retail
> sales falling sharply, sending shock waves through the rest of the
> supply chain.
> The 1.1 percent drop in wholesale inventories reflected a 0.2 percent
> fall in stockpiles of durable goods such as autos and appliances,
> which are expected to last at least three years. Inventories of
> nondurable goods, products such as food, clothing and petroleum
> products, dropped by an even sharper 2.6 percent in October, a record
> amount.
> The 4.1 percent drop in sales at the wholesale level reflected a 4.2
> percent decline in sales of durable goods, and a 4.1 percent drop in
> sales of nondurable goods.
> Wholesale inventories are goods held by distributors who generally buy
> from manufacturers and sell to retailers. They make up about 25
> percent of all business stockpiles.
> Factories hold another third of inventories and the rest of the
> inventory stockpile is held by retailers. The inventory level for
> retailers will be reported on Friday.
> The cutbacks at the wholesale level reflect the deteriorating
> conditions at retail stores, where consumer spending has been falling
> as households struggle with rising unemployment and tight credit
> conditions.
> AutoZone Inc. said Tuesday its fiscal first-quarter profit fell
> slightly as cash-strapped consumers put off some vehicle maintenance,
> but the Memphis-based auto parts retailer posted a profit that beat
> Wall Street expectations.
> Traffic at malls remained sluggish last week, even as retailers
> stepped up bargains, Lazard Capital Markets analyst Todd Slater wrote
> in a research note Monday.
> Retailers are increasing their promotions as consumers cut back
> spending during what is expected to be one of the worst holiday
> seasons in many years. Deckers Outdoor Corp.'s UGGs brand of sheepskin
> shoes and boots, and American Apparel Inc., which sells cotton T-
> shirts and apparel, appeared to be exceptions and were generating
> "solid" business at full price, Slater said.
> "The best traffic and conversion was seen at Aeropostale, Banana
> Republic, Bath & Body Works, Coach, J. Crew, Old Navy, Victoria's
> Secret, and Limited Too (soon to be Justice), as each was more
> aggressively promotional than during Black Friday," he added.
> Beaten-down shoppers last month handed retail stores their worst
> results in at least 39 years.
> Costco Wholesale Corp., usually a strong performer, reported a bigger-
> than expected sales drop. Abercrombie & Fitch Co., Kohl's Corp. and
> Macy's Inc. all reported sales declines of more than 10 percent. One
> notable exception was Wal-Mart Stores Inc., which posted sales gains.
> Overall, sales dropped 2.7 percent last month, according to the
> Goldman Sachs-International Council of Shopping Centers index based on
> 37 stores. It was the worst showing since at least 1969, when the
> index began.
Rid America of 20 million illegal alien culture distorting leeches and
watch
the economy rebound!
mitch
http://www.wvwnews.net/ Western Voices World News
http://www.vdare.com/ V-Dare