Sales growth is running ahead of inventory growth in this illustrative three-period view, widening the operating gap between demand and stock expansion.
Related practice: Retail Profit Recovery
Sales growth increased from 6.6% in April to 7.2% in May before easing to 6.8% in June.
Inventory growth remained lower across the same illustrative period, holding at 3.6% in April and May before easing to 3.2% in June.
The separation places greater weight on where inventory is positioned, where replenishment is occurring and whether current sales growth is concentrated in categories carrying sufficient stock.
Illustrative year-over-year change, %
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