Retailers are still sitting on a mountain of inventory
Yahoo Finance Live anchors Julie Hyman, Brian Sozzi, and Brad Smith discuss retail inventory levels and Gap merchandise at Costco.
Video Transcript
[AUDIO LOGO]
BRIAN SOZZI: All right, don't be fooled into thinking all is fine in retail because of this week's blowout January retail sales data. The reality is that retailers are still sitting on a mountain of inventory left over from the lackluster holiday shopping season.
Our friend and retail expert Jeff Mackey put out a tweet on all this today, which shows retail's inventories challenges. They just continue. Costco selling cut-rate Banana Republic clothing. Is it exactly a sign of a healthy market, Julie Hyman?
JULIE HYMAN: Although, he's-- I feel like he's extrapolating more specifically for the Gap corporation than for retail more broadly.
BRIAN SOZZI: Yes.
JULIE HYMAN: We have much more to say about the issues at Gap, but we won't say them right now.
BRIAN SOZZI: I'm just disappointed in myself. I didn't even realize that Costco is getting inventory from a Gap. That is the first time I ever saw.
JULIE HYMAN: It might be a new thing.
BRAD SMITH: But what's that mean for TJ Maxx and the competition there? Because if they're all bidding in--
JULIE HYMAN: Oh, if Costco is now competing with TJ Maxx on that.
BRAD SMITH: Yes.
JULIE HYMAN: Oh, interesting.
BRAD SMITH: If they're trying to shore up their-- that type of inventory in order to keep people coming in, then for a TJ Maxx, that's just one more competitor in the field.
BRIAN SOZZI: Around the market. It also means I need to do a better job.
