Contradictory trends – Retail Sales forecasts at odds with imports trends

An article in the New York Times (Oct 11, 2011) describes the contradiction faced by shipping companies. Growth in retail sales have inspired strong retail growth forecasts into the future. But dropping manufacturer shipments at ports suggest demand downturns at retail.  Should the container shipments be used as a better guide than sales projections to forecast trends this holiday season? Does this inconsistency suggest a significant supply chain breakdown in the apparel industry or a transfer of risk because domestic manufacturers can respond faster though at higher past price points?

About aviyer2010

Professor
This entry was posted in Global Contexts, Service Operations, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

One Response to Contradictory trends – Retail Sales forecasts at odds with imports trends

  1. I think it makes sense that, if there is a strong Christmas retail season, manufacturers are producing more domestically. They usually can’t build up inventory for holiday items because the “hot” items haven’t been designed for more than a few months. It will be interesting to see what happens.

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