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Convenience is often cited as the top reason why shoppers head online rather than in store. But for retailers, this shift results in a few inconvenient truths.
First, the shift has resulted in plummeting same-store sales in brick-and-mortar locations.
Second, these online transactions all too often become a two-way street. The National Retail Federation says the amount of merchandise returned increased by 52 percent from $171 billion in 2007 to $260 million in 2015.
Sustained inflation has compressed consumer spending across categories, resulting in softened sell-through rates and climbing aged inventory ratios. For retailers, brands, and manufacturers, the downstream effects are distinct, but the core problem is the same: the excess inventory is there,…
This well-known athletic retailer had large volumes of aged overstock held at various distribution centers (DCs) around the country. A small group of jobbers purchased the inventory on informal terms, managed by each DC, leading to inconsistent processes and outcomes…