BusinessLabor Day 2022 sales: retailers take advantage to finish off their excess...

    Labor Day 2022 sales: retailers take advantage to finish off their excess inventory

    The Labor Day 2022 holiday always comes with traditional deals; however, this year, retailers moved up many of their sales to make the most of and reduce your excess inventory as much as possible.

    From the inflationary rises, the retail chains began to notice that products that were not considered essential remained in stockbefore a much more conservative spending of its clients.

    This left them with large amounts of products such as household appliances and furnishings or clothing in their warehouses, which are now looking for ways to sell.

    Labor Day 2022 is a good opportunity for chains, but not only to take advantage of the discounts that are already traditional for this day, but also to extend the offers to the previous days.

    According to Mark Mathews, vice president of Research Development and Industry Analysis for the National Retail Federation (NRF), this year Lots more early Labor Day deals in sight compared to past years, according to a report from FoxBusiness.

    In this sense, chains prepare their stores for the Christmas seasonthe most important of the year for the retail sector, and for this they take the opportunity to reduce their inventory of products out of season as much as possible.

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    Opportunities to roll out aggressive offers are currently relevant for chains like Walmart, Macy’s and Nordstrom, all with warehouses full of products that have not been sold.

    The market got into this scenario after companies calculated their product orders to suppliers based on mid-2021 sales levelswhen buyers poured into stores after several months of confinement.

    Last year, retail chains faced a great demand that increased its sales 14% in its annual comparison, a milestone for this sector of the economy in the United States.

    Mathews added that the data is very significant, because if it is compared with the level of sales of the previous year, 2020, in the midst of a pandemic, the average was only 3.7%.

    With these numbers, the chains prepared for a 2022 that was expected to be just as voracious; nevertheless, the products took a long time to arriveas supply chain problems complicated deliveries from suppliers.

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    Consumers started 2022 in a buying mood; however, as inflation was demolishing their ability to pay, their spending priorities were changed and limited to the purchase of essential products, such as food.

    But when the purchasing criteria had already changed for consumers, retailers began receiving delayed products to their shelveswhich left them with excess inventory.

    Walmart, the largest retailer in the country, and others such as Target had complicated reports on their sales levels due to the withdrawal of consumers and presented markdown strategies to attract them again and look for new ones.

    The markdown strategy worked for Walmart which, while it still has robust inventory, brought shoppers back to the store and that new sectors of the market approach their sales floors.

    Other retailers that are also going through the sales are Macy’s and Nordstrom, which have made public your unsold inventory problems.

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    “Promotional markdowns intensified in July as a result of increased price competition in the industry as all retailers work to clear excess inventory,” Macy’s CEO Jeff Gennette said on an earnings call.

    In the case of Macy’s, sales have contributed to leveling demand of customers with their inventory levels, although they still have categories with excess products in warehouses.

    Some of the products that Macy’s discounts during this season are, mainly, home furnishings and sportswear to be at homeboth of which were very popular during the months of the pandemic.

    For its part, the executive director of Kohl, Michelle Gass, assured that the chain increased its products on sale, with a view to liquidating excess inventory.

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    Source: La Opinion

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