Walmart, Target + More Retailers Are Canceling Orders to Manage Inventory Excesses

Retailers this quarter have announced aggressive actions to manage inventory excesses that have accumulated in the last few quarters. In some cases, companies are cancelling orders to prevent any further build-up in stores and warehouses. As consumers pivot to mainly non-discretionary categories, big-box and department store retailers have seen excesses in discretionary categories like apparel. In the last week, retailers like Target, Walmart and Kohl’s have mentioned cancelling or cutting down on orders to stay ahead of their higher-than-usual inventories. Meanwhile, brands that partner with wholesale retailers have noted the impact of these cancellations. Walmart CFO John Rainey said this week that the company has “canceled billions in orders” to deal with inventory pileups that have amassed over the last few quarters. Target said it had reduced its “inventory exposure in discretionary categories” throughout Q2 by canceling more than $1.5 billion of orders in these categories and marking down products. Kohl’s has also pulled back on order receipts and increased promotions to get through an inventory glut. “We have taken action to address inventory, including increasing promotions, being aggressive on clearing excess inventory and pulling back on receipts,” said Kohl’s CFO Jill Timm in a call with investors. Under Armour also said it made some proactive

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