Black Friday and Cyber Monday sales are expected to be bigger than ever this year as retailers clear out their excess inventory. Retailers from Harvey Norman to Wesfarmers have stocked up on inventory as they wait for their orders to arrive. If the demand for consumer goods does not recover strongly, retailers will have to cut their prices significantly to clear stock.
In the June quarter, Australia’s retail inventories rose to almost $40 billion, which is significantly higher than the previous quarter’s value. The value of these items rose at a faster pace than the volumes. During the pandemic, inventories grew at a faster pace than those at the end of June 2019.
Days inventory, which measures the amount of time it takes for businesses to sell their inventory, rose by about 25 per cent in 2019.
Retailers believe that being overstocked is better than being undersupplied due to global supply chain disruption. Many have said they would rather have stocks in the shed and on the shelf than hunting for them in the country.
Getting the right stock at the right price can be a very challenging with risks to both having too much stock and not enough stock.
Drastic falls in spending on household goods and fashion have raised concerns about the strength of the recovery.
Black Friday and Cyber Monday are the biggest shopping days of the year, and they are expected to see a decline in demand.
Telstra has traditionally had some great Black Friday deals, so if you’re looking to buy, check out some Telstra Deals and use a Telstra coupon.