American businesses struggle to handle inventory

Good news for many American consumers In the context of escalating inflation, promotions for televisions, furniture, clothing, sports equipment and many other items are being promoted.

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. Because in the last year, the major retail chain did not launch demand stimulus programs because the supply of goods was relatively limited, stemming from the supply chain crisis.

“Usually large chain stores will lower the price of products at the end of the season to clear all inventory. They will distribute to smaller local retail stores,” said Ms. Jie Zhang – Marketing expert, University Maryland, USA said.

The situation has changed in recent months, people’s shopping demand has decreased due to the pressure of inflation, currently approaching the highest threshold in 40 years.

Target said it imported too many products such as furniture, televisions, and kitchen appliances in the first quarter of 2022, while consumers turned to shopping for luggage, toys and decorations. House. Macy’s sales fell 20% from the previous quarter.

“We couldn’t have predicted this,” said Brian Cornell, CEO of Target.

Target has slashed prices on some large products to accommodate and display high-volume products, while Best Buy has increased promotions on televisions and computers. Many other retail chains have also made similar moves.

“There is too much backlog in the entire retail industry as a whole. Our company will increase promotional activities for the rest of the year, until the end of the peak shopping season,” said Richard Hayne – CEO of the company. Urban Outfitters said.

Now American consumers don’t need to hunt for deals anymore because they can also find more “bargains” at other retail chains like TJX or Burlington. The job of the stores now is to stick the prices so that consumers are willing to pay their bills.

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