By Ananya Mariam Rajesh and Savyata Mishra
November 13, 2023 – 1:02 PM UTC
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(Reuters) – As the holiday shopping season approaches, major U.S. retailers from Dollar General (DG.N) to Walmart (WMT.N) and Macy’s (M.N) could be saddled with too much stock for a second straight year, according to a Reuters analysis, jeopardizing retailers’ profit margins and generating steep discounts for shoppers.
LSEG Workspace, a financial news and data platform, calculated inventory turnover ratios of 30 major U.S. retailers for Reuters. To determine which chains are most vulnerable to carrying excess stock – a problem that raises retailers’ costs – LSEG divided each retailer’s cost of goods sold by the average value of its inventory in the second quarter.
Stuffed stockrooms are especially challenging for retailers this year because American shoppers…
