Where has all the inventory gone

The Global recession that has been impacting all countries and most major business sectors is having a dramatic impact on the off price industry and the availability of merchandise. RG Riley has been seeing declining inventory levels for the better part of the last 9 months. Recently we have seen a precipitous decline in the availability in the irregular tee shirt market with broad impact on the white tee shirt inventory levels. These shortages stem from production cut backs as the producers work to reduce their on hand inventory and thereby reduce there day to day operating cost.

These recent shortages while painful will probably continue to impact the off price apparel market for the next 3 to 6 months and RG Riley expects to see shortages in several key areas for the foreseeable future. While these shortages are problematic they should serve to stabilize pricing and put a halt to the downward spiral in off price apparel prices. While we do not expect to see sky rocketing prices we are already seeing upward pressure on many items that are in short supply. The upward pricing pressures may push prices up by as much as 10% in the next 6 to 12 months.

Over the long haul we continue to see strength in the off price area and foresee continued growth as consumers continue to seek bargains. Many of RG Riley's retail outlets are seeing overall strength and sales increases as the consumer trades down to more value driven retailers.

RG Riley is a closeout wholesaler of off price apparel to the discount trade. Our customers include chain stores, drug and food stores, swap meets and flea markets, general merchandise and independent stores. We provide discount apparel at tremendous pricing to many of the charitable operations and assistance programs around the country. RG Riley serving the discount apparel market for over 80 years.