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Problems developed after the company cut prices deeply to sell off inventory earlier in the year, hurting first-quarter results.
Non-importation gave more established merchants a chance to restrict supply, sell off inventory, and thin out the ranks of their rivals.
Clothing retail executives have said they need to sell off inventory purchased when textile prices were higher before consumers can take full advantage of falling cotton prices, while car parts retailers say they are still paying high shipping costs that have not fallen along with lower fuel costs.
New home construction will decline as builders attempt to sell off inventory, until at least mid-2007 when the glut of new homes is expected to lessen.
The economy grew at a 0.7percentt annual rate in the fourth quarter, restrained by headwinds that included the strong dollar and efforts by businesses to sell off inventory.
Similar(51)
A DEALER'S COLLECTION Bernard Goldberg, a gregarious longtime fixture at antiques fairs who specializes in Arts and Crafts furniture and Modernist art, is retiring and selling off inventory.
Two fixtures of the international fair circuit, which have both recently shuttered shops full of 20th-century antiques, are selling off inventory at auctions next week.
The slowdown was largely due to businesses selling off inventories and Americans importing more foreign goods.
Caterpillar's retail dealers are selling off inventories, rather than buying new machines, forcing the company to idle some production at plants earlier this year with additional shutdowns coming, the company's executives said on Monday.
"Since last April, the strategy of the group was to sell off existing inventory.
Shop at the end of the month, or the end of the year, Mr. Shenhar suggested, when dealers are most eager to sell off their inventory.
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