Tech Channel Index: CE retailers reduce excess inventory

SAN JOSE, Calif. The Tech Channel Index has reported that despite slowing sales, U.S. specialty electronics retailers have managed to dramatically reduce their excess inventory that became evident in September.

Channel activity for this group has been on the decline since September. Although there was a slight improvement after Black Friday, overall sales of U.S .consumer IT products are still down 34% over the same period last year. This means fewer sales out to consumers for the retailers. Meanwhile excess inventory has declined from a peak of 16 weeks in mid-November to 9.8 weeks currently and is nearly on par with the same period last year. This inventory reduction indicates that U.S. specialty electronics retailers have aggressively managed their inventory levels in response to a predicted sales slowdown.