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Firms reacted by cancelling orders and slashing inventories.
One reason why the downturn was so severe is that companies met demand by slashing inventories.
Much of the fall was due to businesses slashing inventories to cope with drops in sales.
Or by slashing inventories through production only in response to actual demand?
By slashing inventories, shutting factories and cutting jobs, Sony and its rivals have been bracing for another retreat in demand, which many expect later this year.
The 0.8 percent drop in wholesale inventories followed a 1.6 percent rise in November that had set off hopes that businesses were growing more optimistic after a prolonged period of slashing inventories.
Similar(49)
But slashing inventory may not be enough to turn around the company's fortunes.
If they all occur, and Sears succeeds in cutting costs and slashing inventory, the company could have a sizable cash cushion in the fall.
Saks has taken a variety of cost-cutting measures, such as slashing inventory and employees, but those moves alone won't provide the wherewithal to cover debt service.
Retailers aren't expecting the economy to improve in time for their crucial back-to-school events, or even their big holiday bonanzas, but they have finally started reacting by cutting costs and slashing inventory.
Limited Brands has tried to raise profit margins by slashing inventory, decreasing discounts and selling the new BioFit and Dream Angels bras at full price.
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CEO of Professional Science Editing for Scientists @ prosciediting.com