Suppliers facing stock crisis
With stores selling footwear forced to close in many countries due to the spread of coronavirus, suppliers are experiencing unprecedented difficulties with excessive stock levels. Chinese factories had to close in January and products that were due to arrive for the spring and summer seasons were delayed. China’s production resumed just as European and North American retailers went into lockdown.
Taking pre-emptive action to cope with an expected overload, some brand owners and retailers cancelled orders, with Chinese imports to the USA of textiles and apparel reportedly dropping by 31.7 per cent in January alone. Other companies are selling more products online, giving footwear away to good causes, or putting stock into storage – an expensive but viable option, the finer points of which are described in the article 'The storage of footwear and components'.
This article was originally published on page 2 of the May 2020 issue of SATRA Bulletin.