| Some of that stockpiled inventory might be with us for a while. Several clothing retailers are saying they may pack away a substantial share of inventory for later seasons, or even next year, the WSJ’s Jinjoo Lee reports, instead of pushing their goods into what’s likely to be a cutthroat period of post-pandemic markdowns. Companies across the retail sector are coping with bloated inventories after the coronavirus lockdowns kept consumers at home over much of the spring. The stockpiles are a major cloud over apparel retailers because sales are highly seasonal and styles can change drastically over the course of a year. But merchants hope to avoid deep sales discounting that is a drag on profits. Not everyone is following a “pack-away” strategy. Fast-fashion retailers are moving quickly to reduce inventory levels, while some luxury brands say they will just lengthen their seasons to sell as much as possible. |
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Operations and Supply Chain Management 