The outbreak of COVID-19 has had an indelible impact on our culture and resulting behavior. How we work, travel, socialize, and shop have all changed – and we are all questioning what the new normal will be as states and businesses reacclimate and reopen for business. In the specialty and department store retail business shoppers have become accustomed to shopping online, however, the percentage of online business – although increasing year over year – still pales in comparison to brick and mortar sales; by NRF statistics, they are only 10% industry wide.
The inventory purchased months prior to the COVID-19 pandemic was meant to support store sales as well as online. Some of this inventory could be delayed in customs, some may not have left the manufacturer, and some could be sitting in the DC meant to be shipped to stores. Much of this merchandise is seasonal. Typically, 80% of merchandise is fashion. By the time the stores open, it will be obsolete.
How to deal with this inventory obsolescence efficiently will be key to maintaining profitability. Some options retailers may be considering to manage this inventory are:
We, at Ascent, hope that by lending our experience and knowledge that you can start to build your strategy for Inventory Management and other sound strategies and processes to help you regain strength in the market as soon as business resumes. If there are other topics that you would like us to help with, please reach out to me at ralgeni@ascenterpsolutions or firstname.lastname@example.org, or by contacting us at 801.660.2901. We wish you the best during this difficult period.