Monday, December 18, 2017

Attention Retail Investors And Vendors: Beware of January 10, 2018

Image result for christmas season markdownsThere are two days you should remember when trying assess the potential of a retailer: December 17, 2017 and January 10, 2018. Both dates are important and suggest how well a company will do in the future. The December date is when most chain retailers take early markdowns of merchandise that is not selling well during the Christmas selling season. Many stores experience sluggish sales during the first part of December and try to create excitement with three-day sales and other promotional activities. This is not unusual.

That is why I am much more concerned about the January 10, 2018 date. That is the day when all bills come due and must be paid. Most retailers will be able to generate plenty of cash in December and can pay their vendors.. . . more

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