Retailers Face an Unprecedented Situation with COVID-19
Uncertainty in the retail environment requires a critical understanding of the business ecosystem to identify and manage risk surrounding inventory.
The impact of COVID-19 is developing in real time, and impacts to supply chain and inventory are growing with uncertainty, as store closures are expected to continue through April and potentially into the summer.
COVID-19 PRESENTS CRITICAL CHALLENGES IN RETAIL
Retailers face an unprecedented situation with COVID-19 forcing the closure of stores for an uncertain amount of time. Basic, fashion, seasonal, and trend product is ‘trapped’ in stores and distribution centers, and possibly at third-party providers incurring storage costs. Product is stranded with overseas vendors and partners in various stages, from greige goods to finished product. Retailers must address critical questions and prioritize actions to weather the storm and ensure long-term viability.