American businesses “greatly lower the price” of goods because they hoard too much

Good news for many US consumers amid rising inflation: promotions for TVs, furniture, clothing, sports equipment and more are on the rise.

Target, Walmart, Best Buy, Urban Outfitters and many leading retailers in the US say they are sitting on a “mountain” of inventory, forcing them to soon launch discount programs and stimulate sales. .

This is in stark contrast to 2021, when consumers rarely encounter similar promotions.

In the last year, large retail chains did not launch stimulus programs because of the relatively limited supply of goods, stemming from the supply chain crisis.

Stores and brands can easily sell their products at the desired price in the context of the high savings of the American people during the pandemic and the willingness to “open the wallet”.

The situation has changed in the last few months. Inventories of some businesses increased because they ordered too many goods from manufacturers with the expectation that people’s consumption would continue to increase sharply. But people’s shopping demand has decreased due to the pressure of inflation, which is currently approaching the highest threshold in 40 years.

“Businesses are importing too many goods to keep up with market demand, which is slowing down,” Dana Telsey, CEO and research director at Telsey Advisory Group, said in a report to clients. Discounts and promotions are appearing more and more, she said.

“There is so much backlog across retail in general,” said Richard Hayne, CEO of Urban Outfitters. The company will increase sales for the rest of the year and through the peak of the winter shopping season, he said.

Target said it imported too many products such as furniture, TVs, and kitchen appliances in the first quarter of 2022, while consumers turned to shopping for luggage, toys, and decorations. House.

“We couldn’t have predicted this,” said Brian Cornell, CEO of Target. Target has slashed prices on a number of large-size products to make room for and display products that are in high demand.

Best Buy also increased promotions on TV and computer products. “Promotions are being pushed harder for some products, similar to the pre-pandemic period,” said Corie Barry, CEO of the company.

Consumers can also find more “bargains” at other retail chains such as TJX, Burlington.

“The current shopping environment is much better than it was a few years ago,” said Michael O’Sullivan, CEO of Burlington. “Many brands that we haven’t seen in the last two years are also coming back,” he said.

According to Trong Dai