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Why Rising Retail Sales May Signal Optimism for Some, the End for Others

Posted 03-08-2010 at 01:39 PM by Albert Fong (Al's Supply Chain Corner)

Last year with the terrible economy, the retail sector offered a glimpse of where everyone and everything else was. While you may not have understood GDP or the manufacturing index, you could simply go to the deserted shopping mall to get a first-hand look of the economic pit that we had dug. For those in the logistics and transportation industries, the low inventory levels, empty warehouses and disappearing suppliers signaled tough times ahead.

2010 has been better than 2009 if ever so slightly. Even with unemployment still hovering around 10% nationwide, people are beginning to spend again. If you want further proof, look at the sales figures for February, and you’ll see what I mean. Companies such as Target, Nordstrom’s and McDonald’s all report rising sales, the best in two years. In the supply chain, that means inventory levels are poised to ratchet back up again. More consumer demand means the need to have more items on hand. And with the need to stock...
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