Apparel retailers face inventory glut
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.