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Channel Pulse:

US Retailers Appear More Conservative Going into Q1

Amidst pressures to manage cash-flows within an uncertain economic environment, the bricks and mortar portion of the US Technology Retailers1 appear to be maintaining relatively more sparse stocks of goods than in previous years.

For the consumer IT and electronics products tracked in the Tech Channel Index, US Technology Retailers maintained between 10 to 20 percent less inventory coverage2 than in the same time period of 2008.
Weeks of inventory carried by US Technology Retailers 2009 YTD ending January 31 compared to the same period in 2008.

Looking Ahead

Based on past years, Q1 inventory levels tend to be generally flat following the post-holiday build-up. If these patterns hold, we may see sustained sub-normal inventories as retailers get a sense of what lies ahead for them.

About the Tech Channel Index

The Tech Channel Index creates a single uniform view into high tech channel health with timely and detailed measurement of sales and inventory performance for major and emerging markets across the globe. As of August 2008, Index metrics are derived by aggregating and normalizing over 5 million transactions collected from over 1500 distributors and retailers each week. Participating Index companies represent over $30 billion in annual channel sales in multiple high tech product categories. The basket of 35,000 products chosen for the Index have been tested and benchmarked against established economic standards and have been found to accurately represent spending on Enterprise IT, Consumer IT and Software categories. Products included in the index are tracked across all geographies and partner segments worldwide. This approach to construction yields an Index data set that is uniquely uniform from channel-to-channel and country-to-country. www.techchannelindex.com



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The Tech Channel IndexTM is a global channel health monitor updated weekly through the aggregation of more than 5 million high tech OEM channel sales and inventory transactions representing over $30B in annual sales. Learn More
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