Retailers in the US are clearing out excess inventory as they reopen stores post COVID-19 lockdown, indicates research firm Coresight Research.
Temporary store closures across the US began in the second half of March, owing to the COVID-19 pandemic. It was possibly the worst possible time, as it was at the end of the spring apparel season before the start of the summer season. Spring collections were, thus, largely trapped inside closed stores, and summer collections, those that could not be cancelled, were trapped on ships and inside warehouses.
As stores begin to reopen with the easing of lockdown, retailers are faced with a tough choice regarding their excess spring-collection inventory. If they have sufficient liquidity and wish to protect their brand, they can pack it away for next year or donate it. If not, they can try to roll over the spring merchandise as the summer collection or find a channel in which to sell it – such as an outlet, an off-price store, a liquidator or the resale channel.
Hence, a large quantity of merchandise is likely to hit the US market this summer from regular stores, especially from retailers that are permanently closing stores and those that are liquidating following a bankruptcy filing. Discount and off-price stores were temporarily closed amid the retail lockdown and so were not immediately available as a channel for offloading merchandise. With more retailer bankruptcies and store closures likely to come, this could lead to additional discount sales and liquidations.
Many retailers – such as Gap, J.Crew and Nordstrom offered discounts of 40-70% in late April – chose to discount their merchandise steeply to clear inventory. They are also keen to position themselves to catch the remainder of the summer and the back-to-school seasons, and move towards preparing for the holidays. Even Amazon has pushed its Amazon Prime Day to September, which is normally scheduled for mid-July, as it had to reconfigure its supply chains during the COVID-19 outbreak to focus on household staples and medical supplies. Such shopping festivals could have the potential to reignite excitement among US consumers.
Even as consumers have become accustomed to continuous discounting from some retailers, it is possible that this spate of unseasonal deals will lure them back into stores again, Coresight Research concludes.
How much technology is too much technology? Tech has inevitably become asApril 15, 2021 | By Shruthi Nair
According to a report by the United Nations, the fashion industry accountsFebruary 18, 2021 | By Shruthi Nair
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
UAE-based Al Maya Supermarkets is hosting a two-week food festival at select
Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the
Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created
UAE-based Al Islami Foods, one of the largest frozen food companies in
Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free
World’s largest fully integrated online brand in fresh fish and meat e-commerce
Who isn’t a sucker for discounts? Customers today are spoiled for choice
The various e-commerce and virtual retail stores that cater to different product
A private helicopter carrying the chairman and managing director of Lulu Group,
According to a new report by GlobalData, the penetration of online sales
In a 180-degree turn from 2020, retailers’ expansion plans are outpacing plans
Research by GlobalData found that eBay’s job postings in the US and
With the inauguration of 11 new stores in 2020 and 14 more
Vacheron Constantin has announced the official opening of its first boutique in
‘Skinification of beauty’ is the key trend that every retailer in the
On March 8th 2021, Reebok unveiled its new store opening and launched
British brand Marks & Spencer, operated by the Al-Futtaim Group has launched
According to a report by the United Nations, the fashion industry accounts