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Retailers keep one eye on China ahead of the holidays

Nancy Marshall-Genzer Nov 27, 2015
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Before you do your holiday shopping, retailers do their own. They’re looking for the best deals from suppliers. China devalued its currency, the yuan, to make its stuff even cheaper. That could save U.S. retailers a little money.

“I think most retailers are actually just going to enjoy the savings that they get and pass them straight to the bottom line,” said Bryan Gildenberg, chief knowledge officer for Kantar Retail.

Their bottom line, not ours. But other U.S. retailers are abandoning China as their suppliers cut corners and workers, struggling to make money in a weaker Chinese economy. We may see fewer made-in-China labels as retailers decide they should go elsewhere.

“And now you look at other alternatives, southeast Asia, Mexico or other places,” said Ted Vaughan, a partner and retail analyst at BDO USA.

Those other places even include the U.S. Vaughan said he’s seeing more home goods made domestically, and not just things like throw pillows but big stuff, like cabinets.

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