Holiday inventory levels are tea leaves to read state of consumer spending

Holiday inventory levels are the latest set of tea leaves that are raising concern about how retailers are positioned going into the last quarter of the year and the strength of consumer spending. Data from the Logistics Management Index (LMI) , a monthly economic indicator based on a survey of supply chain professionals about the state of inventory, warehousing, and transportation, shows different holiday inventory strategies between large and small retailers. In the latest LMI for August, the report highlighted Walmart's plans to rationalize its product mix, bringing in higher volumes for sure-sellers and taking fewer risks with goods that consumers might not buy in bulk. "This allows them to place orders earlier and also achieve quantity discounts," the report said. "While Walmart and t