Today, the local economy is home to dozens of e-commerce warehouses that cover the hilly landscape like giant spaceships, funneling goods to the population centers in and around New York and Philadelphia. The giant facility is part of an industrial park that was built above a reclaimed strip mine dating back to when this region was a major coal producer. So, much of the industry’s flotsam and jetsam washes up in warehouses like this one, located off Interstate 81, a few exits from the President Biden Expressway in Scranton, the president’s hometown. “I have never seen the pressure in terms of excess inventory as I am seeing right now.” “It’s unprecedented,” said Chuck Johnston, a former Walmart executive, who is now chief strategy officer at goTRG, a firm which helps retailers manage returns. So retailers look to liquidators to do that dirty work.Īdditionally, industry executives say the glut is so large that some retailers could run out of space to house it all. While some retailers are discounting the surplus within their stores, many would rather avoid holding big sales themselves for fear of hurting their brands by conditioning buyers to expect big price cuts as the norm. Many companies cannot afford to let discounted items linger on their shelves because they have to make room for new seasonal goods and the necessities that consumers now prefer. Then, there is the natural cycle of booms - whether because of optimism or greed, companies rarely pull back before it’s too late. Part of their miscalculation was caused by supply chain delays, which prompted companies to secure products far in advance. It’s becoming clear that retailers badly misjudged supply and demand. That, the retail federation noted, is more than the annual budget for the U.S. Last year’s returns, which retailers are not always able to resell themselves, totaled $761 billion in lost sales.
Amazon liquidation warehouse software#
In 2021, shoppers returned an average of 16.6 percent of their purchases, up from 10.6 percent in 2020 and more than double the rate in 2019, according to an analysis by the National Retail Federation, a trade group, and Appriss Retail, a software and analytics firm. While overall spending rebounded last month, some major retailers say shoppers are buying less clothing, gardening equipment and electronics and focusing instead on basics like food and gas.Īdding to that glut are all the things people bought during the pandemic - often online - and then returned. With consumers cutting down on discretionary purchases because of high inflation, retailers are now stuck with more inventory than they need.
0 kommentar(er)
