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Global retailers saddled with unsold clothing

  

Fashion retailers across the spectrum are sitting on piles of unsold clothing.

M&S has asked suppliers to postpone deliveries to its warehouses and has delayed confirming orders for next year. The retailer has resorted to discounting coats, jackets and boots by 20 per cent in a bid to clear excess stock as milder weather combined with shoppers cutting back has led to slow-moving winter clothing. Like other retailers, M&S is re-adjusting stock flow as supply chain disruption has eased.

An easing of supply chain disruption has also led to a pile up of products in warehouses. Lead times from east Asia have shortened which means retailers faced with clearing last year’s delayed stock are receiving new stock quicker than expected.

Asos’ unsold stock is up a third on the year before. Next has returned a very small amount of stock to its third party brands although its inventory was at planned levels. Tesco’s clothing suppliers are preparing for delays after the grocer wrote to them to remind them of its stock holding policies. When brands have unsold stock, they sell at a reduced price through sales. H&M also actively moves garments to stores or markets where it sees a greater demand or stores them for the next season. At a last resort, it considers external buyers of its overstock.

 
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