Covid, supply chain/inventory issues and inflation have combined to change the way consumers are shopping. But in many cases, inventories are now rising faster than sales. Retailers that recently struggled to restock shelves and sought out creative supply chain workarounds are now saying their stores are jammed with too much merchandise. Some are even doing what was unimaginable just a few months ago: discounts and sales.
In a recent Reuters article, Costco, Gap, Macy’s, Kohl’s, Target, Best Buy and Walmart spoke of surplus merchandise, inventory spikes, warehousing issues and loosening supply chainsas factors driving new discounts and promotions.
Citi research says average retail inventories are rising faster than sales growth. With consumer sales pressure floundering beneath inflation and fuel costs, retailers may be left with limited alternatives.
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