Record number of overstocked retail items going to liquidators

[uponit7771]

If Dept of Labor is claiming 50% of current inflation is from energy prices where is the other 50% from?

Yep, a good portion of the rest of inflation is from naked greed and its going to bite retailers in da butt.

https://time.com/6193041/inflation-bullwhip-excess-inventory/

In the last three months his business, B&G Sales, has received more stuff than in any time in its history, he says, as e-commerce sellers and retailers find their warehouses overloaded with products they can’t sell, as buyer appetite has been suppressed by high prices.

and

Consumers may now be lured out of a pause in spending by bargains in stores across the country. There’s never been a situation before where retailers had so much excess inventory, says Zac Rogers, a professor of supply chain management at Colorado State University.

Inventory Glut

https://www.npr.org/2022/07/25/1112945860/retailers-inventory-glut-pandemic

The other day, a large retailer completely rescinded a commitment to buy one of McGill's best-selling sets. A big toy trade show produced fewer orders, too, he said, by over a third. Stores are cautious about future demand – partly because of inflation uncertainty, but partly because their money is tied up in storing and sorting out the inventory glut.

[KPN]

1. American business/commerce mentality:

People have more money so we have to charge them more.

[uponit7771]

6. +1, they don't factor in the "more money" was temporary and that shopping trends are more ...

... immediate than the last world wide virus killer because of information and money exchange; buyers will change on a dime.

Interesting times

[2naSalit]

2. Guess they finally got...

All those ships unloaded only it was long after we had relief funds to buy all that stuff. Guess I'll be looking for the sales on stuff I can't afford otherwise.

Our environmental problems will not subside until we humans with money stop over producing stuff with dwindling resources.

[3Hotdogs]

3. Also, remember the supply chain backup - containers on docks, loaded with shit to be delivered?

Then Biden got the docks emptied. As a result, retailers were flooded with goods that were now, "out of season."

So, if you're a good Republican, you can blame Biden for the mess.

[Novara]

4. Knock down the damn prices, then!

They'll probably STILL make a profit.

[Magoo48]

8. Just don't buy expensive shit. Reuse, buy used, repair, repurpose....

Make it a life style. Fuck the greedy bastards once and for all.

[cilla4progress]

9. Def.

Clothes esp.!

[SWBTATTReg]

5. Greed. Too much greed. Buyers getting tired of getting picked over by retailers.

Sure, I know that things during the middle of the pandemic were messed up, supply lines were messed up, workers were out sick, dealing w/ COVID, etc. but the naked greed doesn't help either. Now they are going to pay for it, these retailers who stuck it to the consumer.

[exboyfil]

7. Don't worry there are still lots of inelastic demand items

Food, Shelter, Medicine, Fuel, and Education. Paying more for a vial of insulin than a 40" HDMI TV.

[progree]

10. Walmart joins the excess inventory chorus. From yesterday:

Walmart warning sends stock price plunging, renews retail worries, Brain Sozzi, Yahoo Finance, 7/25/22

The world's largest retailer slashed its second quarter and full-year profit outlooks late Monday owing to rampant inflation and a consumer retrenchment. Walmart shares plunged 9% in after-hours trading.

“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars," Walmart CEO Doug McMillon in a statement. "We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.”

The Bentonville Bruiser now joins a growing list of household name retailers seeing their profits under siege from brutal inflation in transportation and merchandise with little room to pass on those higher costs to increasingly cash-strapped shoppers.

In early June, Walmart's primary rival Target kicked off concerns about the retail sector's health with a shocking decision to liquidate massive amounts of slow-moving inventory and take a more cautious view on near-term profits. It may take several quarters for Target to clear excess inventory, pros have warned.

Since Target's bombshell, discretionary retailers such as RH, Bed Bath & Beyond, and Kohl's have issued financial warnings for their second-quarter results.

"I have never — maybe I don't remember — seen as much discounting with as much merchandise with high percents off," retail legend and former CEO of Gap and J. Crew Mickey Drexler told Yahoo Finance Live last week.

More: https://finance.yahoo.com/news/walmart-warning-stock-price-recession-worries-205538127.html

[RainCaster]

11. But where's my Jif?

I can't get a good peanut butter, but we have an abundance of pool floaties. WTF