Many companies cannot afford to let discounted items linger on their shelves because they have to make room for new seasonal goods and the necessities that consumers now prefer. Then, there is the natural cycle of booms - whether because of optimism or greed, companies rarely pull back before it’s too late. Part of their miscalculation was caused by supply chain delays, which prompted companies to secure products far in advance. It’s becoming clear that retailers badly misjudged supply and demand. That, the retail federation noted, is more than the annual budget for the U.S. Last year’s returns, which retailers are not always able to resell themselves, totaled $761 billion in lost sales. In 2021, shoppers returned an average of 16.6 percent of their purchases, up from 10.6 percent in 2020 and more than double the rate in 2019, according to an analysis by the National Retail Federation, a trade group, and Appriss Retail, a software and analytics firm. ![]() While overall spending rebounded last month, some major retailers say shoppers are buying less clothing, gardening equipment and electronics and focusing instead on basics like food and gas.Īdding to that glut are all the things people bought during the pandemic - often online - and then returned. With consumers cutting down on discretionary purchases because of high inflation, retailers are now stuck with more inventory than they need.
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