Fiscal cliff averted. Should you increase sales plans?

Q: Phew! The fiscal cliff has been averted. Does this mean I should increase my sales plans for the first quarter?

A: I wouldn’t jump too quickly. Although taxes for most people have been permanently lowered, we also went $4 trillion further in debt over the next 10 years. Also, don’t forget the debt ceiling issue will be coming up again in a couple of months.

At Blacks, we believe that first quarter sales will be up slightly, and second quarter should be up a bit more, with the strongest growth of the year coming in the third quarter. For the fourth quarter we see sales slowing to smaller single digits. Play it safe for now, unless your business is outpacing the trends.

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avatar About Steve Pruitt

Steve Pruitt is founder and Senior Consultant of Blacks Retail Analysis and Blacks Consulting. With over 30 years of experience, Steve is one of the most respected merchandise analysts in the industry. His specialty is apparel merchandising and he has worked with clients in every sector of this category. Steve’s approach is highly customized; he tailors his analyses to the particular needs and market of each client. His work ties together the merchandising piece of the business with the client’s overall financial goals to increase sales and streamline operations. Steve is also a trusted general business consultant, known for his ability to help retailers plan growth and manage change.
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