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Apparel retailers face inventory glut

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Illustration of a pair of jeans with a price tag surrounded by shapes and zoomed in section of $100 bill.

Illustration: Gabriella Turrisi/Axios

Apparel retailers will be overstuffed this holiday season, as many placed large inventory orders to avoid a repeat of last year's out-of-stock issues.

Why it matters: This could lead to heavy promotional activity that will crimp margins as apparel retailers contend with this excess inventory.

The big picture: “The persistent volatility in the global macroeconomic environment caused many businesses to prepare for a disrupted supply chain this holiday season,” Coresight Research says.

  • But lower freight prices and easing international shipping congestion helped allay some of these issues.

Of note: A DataWeave analysis of inflation and discounting finds that consumers aren’t forgoing discounts in other categories, leaving apparel and home as the exceptions.

  • In some cases, consumers are paying more than last year, DataWeave finds.
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