Tuesday, February 7, 2023

Fashion stores in the US fill and stock over 56,600 million

Shop doors don’t close in the United States. Since June, fashion stores in the country have been posting all-time inventory spikes as most operators bought ahead of time to secure their supplies amid the ongoing chain disruptions and lockdown in China. $56,667 million in stock accumulated in the country’s stores in September24.1% higher than the same month last year.

Most operators have reflected this situation in their results over the past few months. Gap, one of the largest distribution companies by turnover, reported in its third-quarter results presentation that its inventory had increased 12% to $3,040 million due to stock in transit and that it had implemented a strategy to mitigate the impact. has started. Hopefully it will pay off next spring.

Same is the case with Levi Strauss after seeing its stock rise 43 per cent as of September. Due to “advance procurement strategy to reduce the risk of inflation, increase in goods in transit, and supply chain disruptions”. In the case of VF Corporation, inventory increased by 88% in the third quarter, while for PVH the increase was

The ratio between inventory and sales is also at its highest since the pandemic, when establishments remained closed in big cities of the country due to restrictions. This ratio was 2.15% in September.

The data is down significantly from the worst months of the pandemic (it reached 18.4% in March 2020), but reflects an increase since the start of the year. In January, the share between sales and inventory was only 2%, but it has been rising ever since, reaching a peak of 2.23% in May.

The trend has been replicated in the fashion multi-brand, where the growth in stock has been higher than in retail. In September, the list of operators bulk In the country it reached a historical series maximum of up to $45,316 million with a growth of 68.2% as compared to September 2021.

Even departmental stores have not been spared. The three biggest conglomerates in the sector, Macy’s, Kohl’s and Nordstrom, indicated in their latest results that the Christmas campaign will be marked by excessive promotion due to a rise in stock.

In the case of Macy’s, the group’s inventory increased by 4% in the third quarter, while Nordstrom increased its inventory by 0.6% during the period and Kohl’s by 33% between August and September.

Nation World News Desk
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