On the graph above, it can be seen that the share of May’s stock is pretty low apart from Zara. Summer colors like lilac, light green, and orange have appeared and will probably be markdown. To know the share of transitional garments of each retailer, you can filter the categories on your Retviews interface.
Sarah Willersdorf, partner and managing director at Boston Consulting Group has suggested in an interview that “maybe they (retailers) could consider a three-season plan, taking the excess of inventory and reserve some of it for multiple seasons”. This would be an excellent opportunity for retailers to revise their buying strategy and buy more SKU but in fewer quantities. Doing that would increase their stock turnover and incentivize their customers to stay updated on the latest trends and arrivals.
The current post-lockdown period is pretty quiet compared to the lockdown. In terms of new arrivals, without any surprises, summer categories are here, but swimwear is not. Should we expect a wave of swimwear once the travel bans are lifted? Only time will tell.
A key opportunity for retailers this year is in working closely with their suppliers. Even if it is difficult to build any plausible scenarios without being either too optimistic or too pessimistic. Having flexible suppliers can help in replenishing the best-selling categories, reported as ‘out-of-stock’ categories, which can lead to great selling opportunities for the retailers.