Industry News

Merchants this year are heading into their crucial holiday sales period with warehouses no longer overstuffed with mismatched merchandise and store shelves lined up for steady seasonal demand. Retailers from Walmart and Target to more specialized sellers like Best Buy and Dick’s Sporting Goods have pared back their inventories while trying to focus their supply chains more tightly on products that shoppers want.

Many retailers have spent much of the year working through the stockpiles from last year and now say they have cleaned up their distribution centers and their balance sheets.

Forecasting fast-changing consumer demand was a major challenge for retailers during the pandemic. This year’s fourth quarter marks a test of new forecasting efforts and a disciplined focus on profit margins rather than top-line revenue. Supply-chain flexibility is a major focus this year, including an effort to keep inventory “fresh and clean.”  

• Mastercard SpendingPulse says U.S. retail sales on Black Friday rose 2.5% from last year. (WSJ)
• Off-price retailers including TJX, Ross, and Burlington saw strong sales growth heading into the holiday period. (Modern Retail)
• Saks owner Hudson’s Bay used its property to secure $340 million in new financing after late payments led some suppliers to withhold shipments. 

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Source: The Wall Street Journal, Liz Young