American retailers are asking suppliers to slow down on sending merchandise


An excess of merchandise is sitting untouched on US retail companies’ shelves. The top twenty public apparel companies in the US have inventories that are up by 26% since 2019, and they’re struggling to sell. Chairperson of the International Housewares Association trade group Steve Greenspon shared some insider knowledge that executives at large retailers are asking buyers to minimize inventory. At this point, suppliers could be offering retailers free merchandise and retailers wouldn’t take it.

Having too much inventory can tie up a significant amount of capital, as retailers have to pay for the inventory upfront before it is sold. This can lead to cash flow issues and make it difficult for retailers to invest in other areas of their business or take advantage of new opportunities. Excess inventory can also lead to storage and logistical issues, as retailers may not have enough space to store all of the items they have in stock. This can result in higher storage costs and can make it more difficult for retailers to manage their inventory effectively.

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