High End Retail Stores Slash Stock to Artificially Create Demand

Saks Fifth Avenue and Neiman Markus have been cutting inventory this year in order to bounce from last year’s disastrous amounts of excess merchandise that was sold at up to 70% of retail price.  The consumer market was hit so hard, that stores were still overstocked by the end of seasons and were forced to slash prices of merchandise in order to sell them. 

This year, however, high end companies such as Saks and Neiman Markus have a new strategy: if you don’t buy early, you just may not have it for the holidays this year.  The large department stores came under sharp criticism last year from designers who claimed that high end stores were creating a consumer discount eye that began to question the actual worth of retail items.

While a typical business cash advance is geared towards small to medium size business, one can’t help but ask how this affects smaller businesses.  Will automobile repair shops have to purchase fewer inventories in order to push consumers to fix their cars?  Will restaurants have to run out of certain dishes in order to push customers to eat out?  Not likely as these industries usually don’t operate on an exclusivity basis like high end stores.  It seems that smaller businesses unless operating in a niche market, have to keep their stores constantly stocked with an abundant array of items in order to compete in the market.  A business cash advance is a viable way of receiving the proper funding to keep retail stores supplied.

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