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Brands and retailers have high hopes for the 2023 holiday season contributing significantly to their annual sales targets. But a new Creditsafe study reveals that these hopes could be dashed, as many brands and retailers have been grappling with mounting debt, excess inventory and cash flow problems this year.
“It’s a positive sign that brands are setting ambitious goals for the holiday season. But achieving these goals doesn’t just depend on offering steep discounts and selling higher volumes. Other factors will play a major role, especially since it’s been a rough few years with a pandemic, recession, rising inflation, rising interest rates and decline in consumer spending. That’s why financial planning, data analysis, cash flow forecasting, inventory planning and supplier due diligence are all so critical. Without this type of planning, brands and retailers will be at a higher risk of increased operating costs and debt, while excess inventory will eat into their profits, cash flow will suffer and annual revenue targets will be missed,” says Matthew Debbage, CEO of the Americas and Asia for Creditsafe.
Key takeaways:
- The study…
