Seeking Alpha

Apparel retailers face inventory challenge

  • The inventory levels of apparel retailers in the U.S. stand at alarming levels, according to Nomura Equity Research.
  • By most accounts, the group didn't perform well over the Black Friday weekend after entering the holiday shopping season at high inventory levels.
  • Retailers such as Macy's (M) and Gap (GPS) may have an edge with their strong online fulfillment programs, but the early starts to the shopping season exacerbate inventory issues. Some retail chains will start selling spring lines in late December forcing a more promotional stance on older items.
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Comments (2)
  • bebopr
    , contributor
    Comments (543) | Send Message
     
    Yipes.....it really is early in the selling season to be "alarmed" about on hands of apparel. Retailers are good at moving excess goods in the days/weeks prior to Christmas. Inventory is tracked by item and by hour if needed in order to react in the most profitable way possible. .
    4 Dec 2013, 09:33 AM Reply Like
  • j main
    , contributor
    Comments (209) | Send Message
     
    I suspect where the worry lies is at what level of markdowns will be required to move the inventory. If the Black Friday deals didn't entice customers, what will? Always interesting....
    5 Dec 2013, 03:22 AM Reply Like
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