Target announced this week that it had followed in the footsteps of other major retailers that purchased too much of certain goods, and now customers may see major markdowns on goods like apparel, furniture and home products.
People look at flat-screen TVs.
In order to make room for more in-demand items like groceries and beauty, Target is cutting prices on home goods and outdoor furniture.
Gap and Macy's are trying to get rid of a lot of active and leisure wear as customers look for clothing suitable for the office.
Walmart offered 25% off technology and home goods in early May, but only 10% off the same time last year.
Best Buy saw lower demand for its computers, some of which are on sale for as much as 300 off, while Costco said it had too many holiday goods and small appliances in stock.
Supply chain delays, limited discretionary spending, and changes in consumer preferences are some of the reasons behind the over inventory. Pandemic comfort clothes such as athletic and leisure wear are being replaced by fancy apparel and makeup. After the supply chain disruptions caused by the Pandemic, retailers are reaching healthy inventory levels. Some shoppers bought more expensive goods, like computers and flat-screens, because of the Pandemic. Customers are spending more on dining out and travel, while others are cutting back on discretionary spending due to inflation.
A summer filled with promotional offers after a year of few discounts due to tight supply caused by worker shortages, supply chain bottlenecks and port slowdowns during the pandemic. Customers may also be able to find more bargains at discount stores like Burlington and Ross.
There is a retail bloodbath.
Retailers' ballooning inventories set the stage for deep discounts.
Too much of a goods thing is happening to retailers.
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