Retailers are tidying up their inventory strategy to understand consumer demand. 

Retailers are tidying up their inventory strategy to understand consumer demand. Big retailers like Walmart, Target, and Best Buy are limiting the amount of merchandise in warehouses and on store shelves to prioritize products that shoppers care about. The unpredictable consumer spending of the pandemic years that left retailers with an overstock of merchandise is driving this shift toward more refined supply chains. Experts predict that holiday retail sales will rise slower than they did last year, as retail spending dropped after a 0.9% increase in September. Retailers like Macy’s have already seen improved gross margins with the decision to opt for more compact inventories, with the CEO-elect stating, “[We’re] focused on variety versus redundancy…the customer today does not want an endless aisle. They want the best aisle.” (WSJ)