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Inventory reduction will run its course, but housing and capital spending, severely depressed, need to snap back.
Inventory reduction 1. Improved cash flow Paradigm shift: business excellence 2. Kanban 2. Minimum inventory 3. JIT purchasing 8 Perfection at all levels of Lean implementation PDCA Cycle .
The initial estimate included an inventory reduction of only $7.1 billion.
That is a sign the record pace of inventory reduction last year is nearing an end.
Gillette says the inventory reduction was always meant to be gradual.
"The intensity of inventory reduction is stunning," said Tobias Levkovich, a Citigroup strategist, in a note to clients.
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Filled order books and the latest inventory reductions bode well for industrial production in the coming months.
The modest buildup in May and June comes after a more than yearlong string of inventory reductions.
In the past, inventory reductions at this pace have always signaled strong rebounds in production within a few months.
The company, based in Atlanta, cited weak demand, pricing pressures, and customer inventory reductions that have taken a toll on the industry in recent years.
Mr. Campbell said TJX offered $113 million for Bob's Stores, though adjustments related to inventory reductions and other issues would decrease the final amount to "less than $100 million".
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