Is the Economy Finally Heating up Again?

AsktheExpertsQ: The latest GDP growth numbers make me think that the economy is finally heating up again. Does this mean I should ratchet up my spring 2014 plans, or am I getting too hopeful?

A: Yes, sales have increased, particularly for better-priced specialty stores. At Blacks, the trends are telling us that this growth cycle should continue for at least the first six months of 2014, and perhaps further. Read your trends closely and adjust your sales plans appropriately.

Also, keep in mind that an increasing sales trend is a great opportunity to increase both your planned and actual turn rates. Too often during growth cycles, merchants let their inventory purchases get ahead of the trend and windup leaving margin dollars on the table.

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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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