Retailers Face Q1 Inventory Glut As Late Cargos Keep Coming

December 3 2021 by Greg Petro

We’re about halfway through retail’s make-or-break season and thus far consumers — despite the sudden, fearsome spike in the cost of just about every basic — seem to be in a spending mood. U.S. retail sales were up three months in a row through October, according to the latest report by the U.S. Census Bureau. Estimates for the crucial current quarter forecast a spending surge of more than 5 percent. 


“The consumer is in great shape, and the consumer’s willingness to spend is very high,” Brian Yarbrough, an analyst at Edward Jones, told Bloomberg.


With inventories lean, paired by overdue cargos, retailers are enjoying a period of happy imbalance between supply and demand. Turnover is brisk. Kohl’s for example, reported third quarter revenue of $4.6 billion, up 15.6 percent year over year, with percent. 


Retail industry profit margins are projected to hit record highs this year, above 13 percent. Noted financial analyst Ed Yardeni recently told Barron’s that the numbers prove “cost pressures aren’t squeezing margins.”  

Read the Full Article at Forbes if you are a subscriber or Download the PDF below.

Customer Experience  holiday  inventory  consumer preferences  supply chain challenges  supply chain  reduce excess inventory  Holiday Shopping  Holiday Season  Voice of Customer Analytics  customer-centric  overstocks  Customer Experience Management  excess inventory


What Retail Executives Say About Supply Chain Disruption Leading Into Holiday: Shortages, Pricing and Delays

We partnered with The Wharton Baker Retailing Center to create a comprehensive infographic exploring our findings.

View the Infographic

The State Of Consumer Spending: Gen Z Influencing All Generations To Make Sustainability-First Purchasing Decisions

We partnered with The Wharton Baker Retailing Center and asked consumers in the U.S. how sustainable practices are impacting shopping habits and purchase decisions.

Read the Report
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