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Inventory Stabilizes for the First Time Since Pandemic

Q3 2023 saw inventories shrink while sales grew.

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Inventory Stabilizes for the First Time Since Pandemic
PHOTOGRAPHY: Thitivong/iStock.com

The third quarter of 2023 marked the first time since 2020 that retail sales outpaced inventory, according to analysts at the Telsey Advisory Group

In Q3 2022, the spread between inventory and sales growth was positive 3,320 basis points. In Q3 2023, the spread hit negative 730 points. In addition, inventories in the retail sector were down 7.8 percent in Q3 2023, compared to 38 percent growth in Q3 2022. 

In 2024, retailers are anticipated to “continue to control inventory,” according to the analysts.

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