On average, large publicly traded retailers’ inventory levels were up 27 percent in June compared to a year prior, BlueFin Research data shows, and discounting has returned with a vengeance.
Some thought the industry had shed its bad habits of over-ordering and relying on discounts last year, when booming demand on top of supply chain delays allowed brands to sell more clothing at full price.
Retailers must now confront their glut of unsold items through promotions or more creative measures, and once again recalibrate orders with manufacturers to try to avoid a repeat this winter.
Between factory lockdowns and a shipping crunch, the pandemic is making it difficult for brands to take advantage of surging demand. BoF spoke with experts about how to make the best of a bad situation.
Last year, American retailers seemed to have broken their habit of relying on deep promotions, thanks to limited inventory and pent-up demand. These beneficial circumstances, experts say, may be disappearing in 2022.
Aviator Nation’s pricey sweatpants and cashmeres had a cult following before they were swept up in the “dopamine dressing” phenomenon. Now, founder Paige Mycoskie – still the brand’s only shareholder – is ready to see just how big her vision for California surfer cool can get.