All the big retailers have accumulated stock over the years
H&M in particular, has been busy in this practice for a while. Zara has been putting more and more products on sale during the sales period. And Uniqlo's strategy which offers great quality products to customers without any additional incentives, while keeping the production steady. This is the situation they had before the pandemic.
With the lockdown, travel bans, and store closures, stock of the current season has been added to the old one, piling it up even further.
According to the Business of Fashion and McKinsey's survey, 65% of consumers from the US and European markets expect to decrease their spending on apparel. Based on these findings, retailers should be ready to take bold actions to get the disposable income of the customers.
Retailers have to face the reality. It is not the time to think about profits but to start thinking about the best strategies to survive.
Aging of the stock
A quick look at how old the stock is can already provide an overview of how big the impacts of the markdowns will be.
With RETVIEWS, retailers can easily see the composition of their stock based on when the garments have landed on the website. To visualize the share of the stock that has been created during the pandemic, we have focused on the last sixty days (0-60) for each brand.