Marketing
Inventory posing big challenge for clothing retailers
February 8, 2021
There's a looming clothing inventory excess in the U.S. and European retail marketplaces and it's likely to pose a big challenge as retailers strive to recover as the COVID-19 pandemic continues.
Many big retailers still have last year's clothes to deal with as they gear up to offer new stock in 2021, according to a Reuters report. As a result, retailers are reducing spring orders and the value of unsold clothing, on a global front, is more than double normal levels.
"Most of the brands now are pretty tight on shipping and the factors are very tight. I think everyone was very conservative with their purchasing," Ron Frasch, former president at Saks Fifth Avenue and now an operating partner at private equity firm Castanea Partners, told Reuters
The news comes as retailers are still closing stores due to the financial impact of lockdowns and as consumers increasingly go online for shopping in light of health and safety precautions.
One garment seeing huge sales are pajamas, according to the report.
