Major retailers across the United States, recently scrambling to replenish shelves amid a product shortage, revealed this week that there are stores now stocked with plenty of merchandise, some of which are even doing the unimaginable just a few months ago: discount for unsold goods.

it’s a sign retailers may face even more trouble given high inflation and higher gas prices. With buyers’ tastes changing rapidly, many retailers are now facing freight overage and rising costs.

According to Costco Wholesale Corp. its inventories are inflated by 26%. The third fiscal quarter ended May 8 and included “a few hundred million dollars” in additional holiday merchandise that was “a bit heavy” on small appliances and household items.

At Gap Inc., a 34% spike in inventory was caused by double sales at Old Navy and longer transit times for goods, Chief Financial Officer Katrina O’Connell said Thursday.

Similarly, Macy’s CEO Jeff Gennette pointed out an “imbalance” in inventory this week. “Supply chain restrictions eased,” spending on receiving overseas goods earlier “than we expected,” he said. Meanwhile, shoppers have changed buying patterns, buying fewer household items and buying casual wear and other goods.

Average retail stocks in the United States are up 11 faster sales growth, according to Citi survey of first-quarter results from 18 retailers May 22. On May 18, shares were up 10 percentage points more of sales, according to Citi analyst Paul Lewis . This is the largest gap since the start of the coronavirus pandemic and highlights the trend that started in March 2022.

During the supply chain crisis, a major retailer went on fun buy, downloading on a range of bulk commodities and investing in commodities until they stock enough commodities to attract shoppers with cash due to the stimulus tests.

but the retailers” are backfiring, executives and analysts say. With inflation rising and fuel prices soaring, shoppers gave way too quickly, buying fewer clothes, televisions and higher-margin appliances.

This script pays retailers like Walmart and Macy’s by discounting excess inventory by discounting more items. And to offer deeper promotions, a move that can erode margins. Walmart CEO Doug McMillon said: “On this earnings call, it started with an ‘aggressive’ price pullback to boost sales of some higher-value merchandise, including apparel.

Certainly retailers, still grappling with the high costs of sourcing goods and hiring workers, may limit the breadth and depth of their promotions, said Jason Benowitz, senior portfolio manager at Roosevelt Investment Group.

“You’re going to see some discounts and you’re going to be too much from last year, but in the end it’s going to be held back before there’s a big ‘procurement of inventory and labor’ costs,” said Benowitz, whose company is owned. Stakes in Inc. and Ross Stores and Autozone Inc.

Excess goods

Inflation has also pushed up prices for everything from TVs to toothpaste, with some lower-income consumers cutting back on spending, according to Walmart and Target.

High-income shoppers showed flexibility, detouring through suits, dresses, shoes and spending more on services and economic data and results from retailers that met the needs of more affordable families.

Evidence of transportation of surplus goods, which are expensive when storage costs increase. Walmart stores and distribution centers 32% more merchandise, target was 43% more merchandise year-over-year and better than eBay 9% more merchandise in the first quarter. The retailers he said. Messi said that stocks increased by 17% compared to the same period in 2021.

Macy’s Chief Financial Officer Adrian Mitchell said Thursday that consumers are turning away from “epidemic categories” and receiving items faster than expected due to the supply chain outage in higher scrutiny. I was expecting second-quarter gross profit margins to match 2019 levels in May.

Some expect that many retailers will start offering more discounts this year to weed out unsold goods. Macy’s CFO, for example, warned of a “high promotion environment.”

Information from StyleSage research showed that mid-range stores like Macy’s and Cole implemented price increases on 57% of items in mid-May.

In the apparel category, retailers report discounts on 36% of items as such from mid-May, up from 32% in April, according to StyleSage. However, the average discount has remained constant at 12% since January.

Kohl’s is offering eight promotions in the second week of May, up from three in the same period last year, according to a study by Jane Haley & Company.

Similarly, during the week of May 9, Wal-Mart offered up to 65% off higher-priced items and up to 25% off tech and home goods. At the same time, offers for technical products last year were only 10%. Discount offers on home page The products were only to be determined on articles.

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