In "Retail:  Discounters Get Their Day”, Business Week, January 14, 2002, the authors suggest that consumers will try to stretch their dollars.  So discounters and value-oriented retailers such as Wal-Mart Stores Inc. and Target Stores will continue to take market share away from mall-based department stores and specialty stores. The authors also suggest retailers will have “to keep an eye on inventory and other expenses." How could an excessive build-up of inventory hurt a retailer’s bottom line?

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Asked Oct 30, 2019

In "Retail:  Discounters Get Their Day”, Business Week, January 14, 2002, the authors suggest that consumers will try to stretch their dollars.  So discounters and value-oriented retailers such as Wal-Mart Stores Inc. and Target Stores will continue to take market share away from mall-based department stores and specialty stores. The authors also suggest retailers will have “to keep an eye on inventory and other expenses." How could an excessive build-up of inventory hurt a retailer’s bottom line?

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Excessive Build-up of Inventory:

 When the inventory stocked or piled up in the store or company more than th...

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