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I’m surprised that 7 weeks of inventory is mentioned as being alarming. https://retalon.com/blog/inventory-turnover-ratio https://retalon.com/blog/inventory-tu
by Someone 2y ago
I’m surprised that 7 weeks of inventory is mentioned as being alarming.
https://retalon.com/blog/inventory-turnover-ratio https://retalon.com/blog/inventory-turnover-ratio says
“The average inventory turnover across retail is around 9x”
That means they have about 6 weeks of inventory.
Of course, it varies by industry, but for many, that shouldn’t be alarming.
What do I misunderstand?
- dimal 2y agoIn seven weeks, there may be no way to restock. Six weeks inventory probably seems fine when there’s a constant inflow.
- Loughla 2y agoI'm kind of lost on why there will be no restock. The price increased, they didn't ban everything. What am I missing?
- rtsil 2y agoUnpredictability. If you restock and the tariffs are eliminated or significantly reduced a couple of weeks/month later, that's a disaster. So the best attitude is to wait and see.
- ImaCake 2y agoThe price increased for sending stuff to the USA. It didn't for every other consumer market in the world.
- dade_ 2y agoUS ports are quiet and shortages are next, but with that will also come panic buying and hoarding. https://www.npr.org/2025/04/18/nx-s1-5367762/the-busiest-ports-in-north-america-are-set-to-take-a-hit-with-new-tariffs https://www.npr.org/2025/04/18/nx-s1-5367762/the-busiest-por...
- anigbrowl 2y agoI'm not going to restock at 2.5 times the price and take the risk of being stuck with a warehouse full of unsaleable consumer goods that people have suddenly realized they can't afford.
- fundad 2y agoRight, they don’t know how much smaller the demand will be during an economic crisis. It’s safer to have empty shelves until they can more accurately forecast what’s left of demand.