Chart of The Week: Holiday Sales and Bankruptcy Trends: What’s the Outlook This Year?

Many businesses rely on end-of-the-year holiday sales to achieve profitability. A good holiday season can make their year, but a bad holiday season can kill the business. That’s why it is important to follow industry trends:

A Final Note:
Last summer, industry leaders Target and Walmart revealed huge build-ups of inventory, which led to steep markdowns when sales slowed. Markdowns will generally have a negative impact on sales and cash flow. A thorough knowledge of your customer’s business and their industry is invaluable in determining their creditworthiness.