Thursday, November 05, 2009

Retail Sales Pick Up: Sound Business Practices are a Key Factor

It's been up in the air about the right approach for retail businesses to survive in this turbulent economy. We've seen the layoffs, inventory reductions, and store closures - wondering if this will be the silver bullet needed to end the terror caused by the financial industry. This morning GAP turned in impressive quarterly numbers, and also changed their guidance to a more positive outlook for the entire year. A great deal of the turnaround has to do with their ability to go lean, and leverage an already impressive supply-chain management system. It would be nice to have a response system that addresses any market changes only days after the issue arrises, but changes in strategies take time. GAP is sticking to their guns. Nothing drastic has changed in their product or their brand, and I believe they will benefit greatly from their brand stability position.

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