Kohl’s, Dillard’s, Nordstrom Prove Cutting Inventory Can Boost Working Capital, But For How Long?

December 12 2020 by Greg Petro


With three weeks until the end of the year, retailers and brands are focused on their balance sheet, and it’s all about finding working capital to survive. Cutting inventory now - possibly in half - can bring retailers closer. However, determining which items to cut is a fool’s errand when done blindly, or worse, using historical data that doesn’t reflect the fluidity of changing consumer preferences right now.

 To top things off, returns are also going to come in hot and heavy in January, particularly because online sales (which have ballooned during the pandemic) tend to have higher return rates than in-store purchases. Forecasts for holiday purchases made online will soar to $234.9 billion in the US this year according to one estimate, which also predicts as much as $70.5 billion could be returned. 

Reducing inventory to reclaim capital is a strategy retailers and brands have been chasing all year, but it’s clear that they are still riding on past purchases for guidance.

Read the Full Articleat Forbes.com if you are a subscriber or Download the PDF below.

holiday  inventory  Consumer Data  reduce excess inventory  Holiday Shopping  Holiday Season  inventory management  Experience Management  Next-Gen XM

Download the Full Article.

Featured Product

InsightSuite for Small Business

Specialized Tools for Small & Emerging Businesses

The fastest and most cost effective way to increase sales, profits and sell-in for growing businesses and digitally native brands.

Learn more
Free Ebook

Maximize Value, Speed & Profit

Learn how to leverage Voice of the Customer Analytics and 3D Product Creation to make more profitable products, faster.

Get the Free E-book
Roundtable Video

Kohl's Creates Value W/Predictive Analytics

Learn How First Insight's Predictive Tools Fuel Kohl's Success

As one of the world's leading omnichannel retailers with more than 1,100 stores in 49 states, Kohl's is leveraging First Insight's predictive analytics solution and voice-of-the-customer data to improve their business.

Watch the Webinar

Consumer Sustainability Survey 2021

The First Industry-Wide Consumer Study On Shoe Sustainability

This industry-wide survey aims to create a critical baseline that brands and retailers can use to ensure they understand what consumers actually comprehend, what terms and phrases resonate best, and what areas they should prioritize.

Download the Webinar & Findings
Supply Chain & Pricing

Navigating Disruption

How The Rockport Company is Optimizing Assortments and Pricing with Data + Digital Product Testing

Learn how The Rockport Company created a new product playbook powered by the Voice of the Customer and predictive tools.

View the Webinar & Highlights