Inventory Stranded by the COVID-19 Crisis Presents a Major Challenge to Retailers
Retail Recovery pt. 2
Inventory has been stranded across the entire retail supply chain. How will retailers deal with the challenge as stores begin to reopen?
Dealing with stranded inventory will present a challenge to retailers as restrictions are relaxed and stores begin to open…
The COVID-19 crisis brought retail to a screeching halt in mid-March, stranding inventory across the entire retail supply chain: in suppliers’ warehouses; at ports of origin, intermediate ports and ports of destination; in retailers’ distribution centers (DCs); and on store shelves and in back rooms. In some cases, the inventory volume represents months of supply, assuming customer demand is slow to return.
Much of this product was in the process of being distributed at the time of peak Spring season, as consumers transitioned from Winter-season products into Spring season or even early Summer product, with different color or feature trends and designs.
Read the first part of the series, "Solving the Inventory Challenges Created by the COVID-19 Crisis."