Owing to improved supply chains and a lack of demand within the current season, a number of British retailers are facing the pressure of rising stock and unsold clothing.
Marks & Spencer is one of UK’s leading retailers, but even it is feeling the squeeze. In order to try and mitigate some of the damages, it has postponed deliveries to its warehouses and delayed finalising its orders for next year. This will hopefully give it time to weather the storm and come out stronger on the other side.
Many retailers are now also experiencing the easing of supply chain disruptions and shortened lead times from East Asia, which has led to increased discounting by many retailers.
A British department store, which wishes to remain anonymous, as per the report said that it was having to readjust its stock flow in order to accommodate new lead times.
The report suggested that the challenges were currently being faced by many retailers and that the relief experienced in other external factors, such as supply chain disruption, lead time and imports/exports, was also being seen.
Much of the job market has been affected by increased discounting, especially in the UK. And thanks to the cost-of-living crisis, it’s been difficult for many to find a balance.
The report stated that brand Next said it had returned a ‘very small’ amount of stock to third-party brands, while Tesco’s clothing suppliers were reportedly told about its stock-holding policy.
Additionally, e-commerce giant Asos said last month that it was set to write off 100 million pounds in stock as it looked to implement a more flexible commercial model.
