Apparel retailers face inventory challenge

|By:, SA News Editor

The inventory levels of apparel retailers in the U.S. stand at alarming levels, according to Nomura Equity Research.

By most accounts, the group didn't perform well over the Black Friday weekend after entering the holiday shopping season at high inventory levels.

Retailers such as Macy's (M) and Gap (GPS) may have an edge with their strong online fulfillment programs, but the early starts to the shopping season exacerbate inventory issues. Some retail chains will start selling spring lines in late December forcing a more promotional stance on older items.

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