{"id":13575,"date":"2022-10-19T18:11:29","date_gmt":"2022-10-19T18:11:29","guid":{"rendered":"https:\/\/www.smithcorona.com\/blog\/?p=13575"},"modified":"2023-12-18T14:50:32","modified_gmt":"2023-12-18T14:50:32","slug":"how-inventory-glut-stole-holiday-warehouse-space","status":"publish","type":"post","link":"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/","title":{"rendered":"How Inventory Glut Stole Holiday Warehouse Space"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><p><span style=\"font-weight: 400;\">It\u2019s not just the \u2018most wonderful time of the year\u2019; it\u2019s also the busiest.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a given holiday season, <\/span><a href=\"https:\/\/www.redwoodlogistics.com\/6-tips-to-prepare-your-warehouse-for-the-increased-holiday-demand\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">retailers increase their inventory 3 to 4 times normal<\/span><\/a><span style=\"font-weight: 400;\"> just to meet consumer demand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means additional warehouse space is<\/span><b> absolutely necessary.<\/b><span style=\"font-weight: 400;\"> And the last thing a warehouse needs is limited space disrupting the management of their inventory.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But unfortunately, that\u2019s exactly what happened this year.<\/span><\/p>\n<\/div>\n            <div class=\"smith-corona-featured-image\">\n\n                <img src=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/10\/How_Inventory_Glut_Stole_Holiday_Warehouse_Space_Feature-1.png\" alt=\"\" width=\"760\" height=\"460\" \/>\n\n            <\/div>\n        <div class=\"fusion-text fusion-text-2\"><p><span style=\"font-weight: 400;\">U.S. retailers saw a record <\/span><a href=\"https:\/\/www.washingtonpost.com\/business\/2022\/10\/10\/discounts-inventory-excess-retailers-economy\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">$732 billion of inventory in 2022<\/span><\/a><span style=\"font-weight: 400;\">, a 21% increase from last year. As retailers failed to both move and sell products, warehouses began overflowing with inventory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reports referred to this as an \u201c<\/span><b>inventory glut<\/b><span style=\"font-weight: 400;\">.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now instead of normal holiday preparations, warehouses are troubled with too much slow moving inventory.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How did this problem arise and how are retailers managing? \u00a0 <\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-1{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><strong>How Did Inventory Glut Become Such A Problem?\u00a0<\/strong><\/h2><\/div><div class=\"fusion-text fusion-text-3\"><p><span style=\"font-weight: 400;\">Situations like inventory glut don\u2019t just happen overnight. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">They&#8217;re the result of a unique combination of supply and demand imbalance and a volatile retail environment. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This sounds more complicated than it is. Let\u2019s break it down:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, the pandemic altered the retail market. Consumer demand skyrocketed as stay at home mandates facilitated <a href=\"https:\/\/www.smithcorona.com\/blog\/how-bracketing-changed-retail-returns\/\" target=\"_blank\" rel=\"noopener\">lots of online shopping<\/a>. This ongoing trend lasted 2 years. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Second, <a href=\"https:\/\/www.smithcorona.com\/label-supply-chain-crisis.html\" target=\"_blank\" rel=\"noopener\">supply chain issues<\/a> affected deliveries. To continue meeting demand amid longer lead times, retailers ordered further in advance and in excess to ensure availability. <\/span><\/p>\n<\/div><div class=\"fusion-text fusion-text-4\"><p><span style=\"font-weight: 400;\">Taking their queue from recent spending habits, these items included:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Household appliances<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electronics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Apparel\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But as supply chain issues began to resolve, consumer spending cooled off around Q1 2022. Purchases shifted to away from goods to pre-pandemic services, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vacations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Restaurant dining<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outdoor entertainment<\/span><\/li>\n<\/ul>\n<\/div><div class=\"fusion-text fusion-text-5\"><p><span style=\"font-weight: 400;\">With piles of inventory stacking up, retailers banked on consumers continuing to spend money like they had the past 2 years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, that wasn\u2019t the case. And just like a game of musical chairs, the music stopped and retailers were left standing with huge piles of inventory.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consumer spending also lessened as inflation rose, jumping up <\/span><a href=\"https:\/\/gcaptain.com\/retailers-face-inventory-glut-as-u-s-consumers-end-two-year-buying-spree\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">8.5% in July from the previous year<\/span><\/a><span style=\"font-weight: 400;\">. Non-essential items to a backseat to more fundamental products like gas and groceries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So just what are warehouses left to do with an overflow of inventory?<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-2{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><strong>Warehouses Respond to Too Much Inventory\u00a0<\/strong><\/h2><\/div><div class=\"fusion-text fusion-text-6\"><p><span style=\"font-weight: 400;\">Warehouses thrive on having the space to hold and move products. Space is <\/span><b>valuable<\/b><span style=\"font-weight: 400;\">, especially leading up to and during the holiday season.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOnce it\u2019s already bought, once it\u2019s in your warehouse, once you own it as a retailer, you need to manage it,\u201d says <a href=\"https:\/\/www.linkedin.com\/in\/brandonrael\/\" target=\"_blank\" rel=\"nofollow noopener\">Brandon Rael<\/a>, Business Transformation Leader at <\/span><a href=\"https:\/\/www.capgemini.com\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Capgemini Invent<\/span><\/a><span style=\"font-weight: 400;\">. \u201cOtherwise you\u2019re losing space in the warehouse.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result of warehouses being swamped with increased inventory, space has become extremely limited.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An additional <\/span><a href=\"https:\/\/www.wsj.com\/articles\/retailers-seeking-more-warehouse-space-to-stow-excess-inventory-11659460929\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">800 million square feet of warehouse space<\/span><\/a><span style=\"font-weight: 400;\"> was expected to handle excess inventories this year, reported by Prologis Inc. As the world\u2019s biggest owner of warehouses by square footage, their 5,800 list of customers includes big name companies such as Amazon, FedEx, and Home Depot.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without the space needed to store incoming items for the holidays, retailers have had to take drastic measures to move products out as fast as possible.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-3{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-3{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-3{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-3 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><strong>Pre-Holiday Promotional Sales\u00a0<\/strong><\/h3><\/div><div class=\"fusion-text fusion-text-7\"><p><span style=\"font-weight: 400;\">For retailers, excess inventory means less warehouse space. For shoppers, it means discounts galore on the horizon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best option retailers have to move inventory out of the warehouse is through promotional sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAs many companies are still receiving goods that were delayed from last year, warehouses are busting at the seams,\u201d states <a href=\"https:\/\/www.linkedin.com\/in\/inventoryjoe\/\" target=\"_blank\" rel=\"nofollow noopener\">Joe Crews<\/a>, owner and consultant of Key Warehouse Solutions with over 30 years of experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So that irritation at seeing holiday products and deals hitting stores before Halloween candy is gone? You\u2019re going to see more of it this year\u2026and much sooner.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Stores like <\/span><a href=\"https:\/\/www.forbes.com\/sites\/retailwire\/2022\/10\/04\/target-moves-black-friday-up-to-early-october\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Target have already taken the lead to move overstocked inventory<\/span><\/a><span style=\"font-weight: 400;\"> with aggressive deals. They ran a Black Friday promotion from October 6-8 and are extending their price match guarantee through December 24.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While getting rid of too much stock is the goal, it comes at a cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cUnfortunately [retailers] will take a margin hit,\u201d says Rael, referring to retailers forced to sell products at less than full price. But this is just a necessary evil to make room in warehouses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He continues. \u201cThere will be financial implications but there\u2019s an overabundance of inventory in warehouses and stores retailers <\/span><b>have <\/b><span style=\"font-weight: 400;\">to get rid of.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the deep discounts retailers ran this summer were unsuccessful and fall sales fail to deliver necessary relief to warehouses, retailers could be in a world of trouble this holiday season and after.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-3{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-3 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-5 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-4{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-4{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-4 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><strong>Worst Case Scenarios\u00a0<\/strong><\/h3><\/div><div class=\"fusion-text fusion-text-8\"><p><span style=\"font-weight: 400;\">Sometimes inventory just can\u2019t be sold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In that event, retailers have to resort to worst case scenarios to get rid of it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cRetailers have to get creative and get as much money back from that product as possible,\u201d states Crews.<\/span><\/p>\n<p><strong>This can be done several ways:<\/strong><\/p>\n<\/div><div class=\"smith-corona-feature-box\"><div class=\"feature-box-content\">\n<h4><b>Discount Retailers<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These are your TJMaxx and Marshalls establishments. As retailers continue looking to offload excessive inventory, these businesses will see a growing supply in merchandise. <\/span><a href=\"https:\/\/www.businesstimes.com.sg\/consumer\/us-retailers-still-have-a-lot-of-extra-stuff-that-shoppers-dont-want\"><span style=\"font-weight: 400;\">Inventory liquidation company Channel Control Merchants<\/span><\/a><span style=\"font-weight: 400;\"> added an additional 25 retailer clients in 8 month this past year due to the influx of products.\u00a0<\/span><\/p>\n<h4><b>Hold onto Items<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">This isn\u2019t ideal but it can work for some seasonal products that can be cycled back through stores next holiday. Items that go out of trend quickly, like apparel, aren\u2019t as lucky. It\u2019s important to remember the longer retailers hold onto dated items, the more they\u2019ll have to mark down the price.\u00a0<\/span><\/p>\n<h4><b>Dumping Items<\/b><\/h4>\n<p><span style=\"font-weight: 400;\"> If warehouse space is needed and inventory won\u2019t sell, items can be thrown away. Unfortunately, some retailers will do this as a last resort. It costs more to store inventory than to keep it, especially if the chances to sell it continue to drop. However, in this case brands should consider donating excess inventory to help both needy consumers and their image.\u00a0<\/span><\/p>\n<\/div><\/div><div class=\"fusion-text fusion-text-9\"><p><span style=\"font-weight: 400;\">Crews says in the end, it all depends on the product. \u201cThere\u2019s wide networks where retailers can dispose of products\u2026and there\u2019s not one solid answer that can be universally applied.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Retailers will have to find the solution that best fits their business.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-4{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-4 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-5{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-6 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-5 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-5{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-5{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-5 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><strong>A Lesson Future Holiday Seasons<\/strong><\/h2><\/div><div class=\"fusion-text fusion-text-10\"><p><span style=\"font-weight: 400;\">While inventory glut was a singular circumstance this year, it doesn\u2019t mean retailers shouldn\u2019t take notes on ways to better handle their inventory.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWarehouse storage space is always a challenge, for every industry regardless of the time of year or unique challenges,\u201d says Crews.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So what can retailers do to avoid another instance of inventory glut?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A key factor is <\/span><b>visibility in your supply chain<\/b><span style=\"font-weight: 400;\">. This means knowing:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What products you have<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where products are located<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where products are going\u00a0<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.smithcorona.com\/blog\/5-ways-to-optimize-your-warehouse-like-amazon\/\"><span style=\"font-weight: 400;\">Investing in the right inventory management<\/span><\/a><span style=\"font-weight: 400;\"> software or equipment aids in visibility. It initiates a more proactive approach if and when disruptions occur, which we\u2019ve witnessed can occur anytime.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis is a time for retailers to course correct and see what they can do differently in the future,\u201d clarifies Rael.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As retailers continue processing through the excess inventory they\u2019ve acquired, the forecast for next year is open to developing a completely new outlook.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-5{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-6{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prepping your warehouse for the holidays means managing your inventory. But what happens when your inventory is overflowing and there\u2019s no space left? That\u2019s what retailers had to deal with this year thanks to a huge inventory glut. To move products, this unique issue needed some unique solutions. We spoke to warehouse and retail experts to learn how retailers managed. <\/p>\n","protected":false},"author":13,"featured_media":13789,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[78],"tags":[],"acf":{"theme_color":"","estimated_reading_time":6,"include_in_most_popular_sidebar":false,"hero_splash_image":13788,"grid_listing_thumbnail":13589,"sidebar_most_popular_thumbnail":13590},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Inventory Glut Stole Holiday Warehouse Space - Barcode Blog<\/title>\n<meta name=\"description\" content=\"As the holidays approach, warehouses are struggling with excess products due to the recent inventory glut. Here&#039;s how they&#039;re managing.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Inventory Glut Stole Holiday Warehouse Space - Barcode Blog\" \/>\n<meta property=\"og:description\" content=\"As the holidays approach, warehouses are struggling with excess products due to the recent inventory glut. Here&#039;s how they&#039;re managing.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/\" \/>\n<meta property=\"og:site_name\" content=\"Barcode Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smithcoronalabels\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-19T18:11:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-18T14:50:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/10\/How_Inventory_Glut_Stole_Holiday_Warehouse_Space_Feature-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"760\" \/>\n\t<meta property=\"og:image:height\" content=\"460\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Alaina D&#039;Altorio\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sclabels\" \/>\n<meta name=\"twitter:site\" content=\"@sclabels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Alaina D'Altorio\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/\"},\"author\":{\"name\":\"Alaina D'Altorio\",\"@id\":\"https:\/\/www.smithcorona.com\/blog\/#\/schema\/person\/1b9fc3da02d7f7eb09679c7abc90ba43\"},\"headline\":\"How Inventory Glut Stole Holiday Warehouse Space\",\"datePublished\":\"2022-10-19T18:11:29+00:00\",\"dateModified\":\"2023-12-18T14:50:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/\"},\"wordCount\":5226,\"publisher\":{\"@id\":\"https:\/\/www.smithcorona.com\/blog\/#organization\"},\"articleSection\":[\"Business Resources\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/\",\"url\":\"https:\/\/www.smithcorona.com\/blog\/how-inventory-glut-stole-holiday-warehouse-space\/\",\"name\":\"How Inventory Glut Stole Holiday Warehouse Space - Barcode Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.smithcorona.com\/blog\/#website\"},\"datePublished\":\"2022-10-19T18:11:29+00:00\",\"dateModified\":\"2023-12-18T14:50:32+00:00\",\"description\":\"As the holidays approach, warehouses are struggling with excess products due to the recent inventory glut. 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