Headlines

Inventory Glut Hobbling Retailers Before Holiday Shopping Season

Too many outdated goods could lead to ‘a bloodbath’ in sector.

Published

1 year ago

November 17, 2022

INSTORE Staff

iStock, sommart

Retailers of all sizes are scrambling to clear their stores and warehouses of excess inventory to make room for new holiday merchandise that’s more likely to move, Supply Chain Dive reports. Among the indicators pointing to that glut: By the second quarter of 2022, retail inventories were up 31 percent over the same time last year, an S&P Capital IQ and FTI Consulting analysis found.

In recent months, many retailers have turned to markdowns and other measures to get rid of product that customers weren’t buying. The big question hanging over the current holiday season is whether retailers’ efforts to whittle down that pile will succeed.

“Retailers are over-inventoried, and they’re very concerned,” Alexa Driansky, a director in AlixPartners retail practice, told Supply Chain Dive. “They placed too many orders when there were supply chain challenges. So now they’re sitting on a glut of inventory as they enter this holiday season, and they know the economy is turning. I think the year ahead is going to be a bloodbath.”

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This Third-Generation Jeweler Was Ready for Retirement. He Called Wilkerson

Retirement is never easy, especially when it means the end to a business that was founded in 1884. But for Laura and Sam Sipe, it was time to put their own needs first. They decided to close J.C. Sipe Jewelers, one of Indianapolis’ most trusted names in fine jewelry, and call Wilkerson. “Laura and I decided the conditions were right,” says Sam. Wilkerson handled every detail in their going-out-of-business sale, from marketing to manning the sales floor. “The main goal was to sell our existing inventory that’s all paid for and turn that into cash for our retirement,” says Sam. “It’s been very, very productive.” Would they recommend Wilkerson to other jewelers who want to enjoy their golden years? Absolutely! “Call Wilkerson,” says Laura. “They can help you achieve your goals so you’ll be able to move into retirement comfortably.”