Inventory levels far exceed sales growth! North American retailers continue to cut orders, and the o
- Author:sofreight.com
- Release Date:2022-10-13
North American retailers are still troubled by excessive inventory levels. A report released by Morgan Stanley on Monday stated on Monday that inventory was a key risk for retailers and electronic product manufacturers.
Morgan Stanley pointed out that retailers such as Best Buy, Gap and Williams Sonoma are most likely to be affected by inventory risks. It also said that there were 19%differences between inventory and sales growth in the commodity industry.
High -risk companies have cut orders, although this time is usually the period when retailers supplement inventory before the holiday season.
Morgan Stanley's consignor survey showed that net orders have fallen to the lowest point since the 12 -year history of the survey. The order volume decreased by 40%year -on -year, and the net inventory level was extremely high. In this survey, about 100 companies regularly share their transportation demand and macro expectations.
Ravi Shanker, the chief transport stock analyst of Morgan Stanley, wrote in the report: "Almost half of the respondents said that their inventory is higher and the order volume will be reduced in the future. ","
The report pointed out: "In the face of excess inventory, companies will need to decide whether they are willing to accept high costs to continue to hold inventory, destroy inventory, maintain a high price and bear the decline in sales, or reduce prices to stimulate demand. Active discount measures to solve the inventory problem, which may trigger a "race reduction". Because companies hope to reduce the price faster than their peers and remove the inventory as much as possible. And exacerbate our predicted profit slowness. "
Analysts emphasized that the import of imports in the clothing industry is worrying. The inventory risk of home supplies and personal electronic products is also very high. There are still some industries that are still undergoing interruption of supply chain. Analysts believe that the machinery, electrical equipment and automobile industries are facing risks as low as moderate inventory chaos.
The results of the Morgan Stanley's survey showed that the number of products ordered by retailers and manufacturers is at a historical low, which is consistent with a report released by investment institutions Keybanc last week. Keybanc pointed out that the slowdown in economic demand may cause transport providers to miss the normal peak season activities before the winter holiday, which has caused "truck transportation cold winter".
Many retailers seem to be prepared for this year's holiday season, and it is expected that imported goods imported from East Asian Manufacturing Center will interrupt. The unprecedented demand for durable goods in 2021 also stimulated retailers to hoard goods. Earlier, it was expected that consumer demand would continue.
However, shopping frenzy is over.
Now, the inventory level has far exceeded the growth of sales. Retail giants like Tajit have also managed its high inventory level by canceling orders. (For details, you can view: Another large US retailer has canceled more than $ 1.5 billion in orders to clean up the commodity inventory)
According to the US customs data summarized by the logistics technology platform DESCARTES, the US imports in September this year fell by 11%year -on -year, the largest import decline since February 2020.
In addition, on September 29, Nike announced the performance of the first quarter of FY2023 (June-August). In the censorship of the asset liability statement of the performance report, Nike said that its inventory increased by 44%over the same period last year to $ 9.7 billion. The company claims that this is mainly due to the increase in transportation inventory due to continuous supply chain fluctuations.
Nike executives said that the inventory in North America alone has increased by 65%over the same period last year, reflecting the delayed delivery of the past two quarters and the holiday orders reached in advance in advance. This has also led to the sale of several seasons at the same time. The executive said that because of this, "we decided to accept these inventory and clearer them more positively in order to place the latest and best inventory in the right position and in front of consumers."
Morgan Stanley pointed out that retailers such as Best Buy, Gap and Williams Sonoma are most likely to be affected by inventory risks. It also said that there were 19%differences between inventory and sales growth in the commodity industry.
High -risk companies have cut orders, although this time is usually the period when retailers supplement inventory before the holiday season.
Morgan Stanley's consignor survey showed that net orders have fallen to the lowest point since the 12 -year history of the survey. The order volume decreased by 40%year -on -year, and the net inventory level was extremely high. In this survey, about 100 companies regularly share their transportation demand and macro expectations.
Ravi Shanker, the chief transport stock analyst of Morgan Stanley, wrote in the report: "Almost half of the respondents said that their inventory is higher and the order volume will be reduced in the future. ","
The report pointed out: "In the face of excess inventory, companies will need to decide whether they are willing to accept high costs to continue to hold inventory, destroy inventory, maintain a high price and bear the decline in sales, or reduce prices to stimulate demand. Active discount measures to solve the inventory problem, which may trigger a "race reduction". Because companies hope to reduce the price faster than their peers and remove the inventory as much as possible. And exacerbate our predicted profit slowness. "
Analysts emphasized that the import of imports in the clothing industry is worrying. The inventory risk of home supplies and personal electronic products is also very high. There are still some industries that are still undergoing interruption of supply chain. Analysts believe that the machinery, electrical equipment and automobile industries are facing risks as low as moderate inventory chaos.
The results of the Morgan Stanley's survey showed that the number of products ordered by retailers and manufacturers is at a historical low, which is consistent with a report released by investment institutions Keybanc last week. Keybanc pointed out that the slowdown in economic demand may cause transport providers to miss the normal peak season activities before the winter holiday, which has caused "truck transportation cold winter".
Many retailers seem to be prepared for this year's holiday season, and it is expected that imported goods imported from East Asian Manufacturing Center will interrupt. The unprecedented demand for durable goods in 2021 also stimulated retailers to hoard goods. Earlier, it was expected that consumer demand would continue.
However, shopping frenzy is over.
Now, the inventory level has far exceeded the growth of sales. Retail giants like Tajit have also managed its high inventory level by canceling orders. (For details, you can view: Another large US retailer has canceled more than $ 1.5 billion in orders to clean up the commodity inventory)
According to the US customs data summarized by the logistics technology platform DESCARTES, the US imports in September this year fell by 11%year -on -year, the largest import decline since February 2020.
In addition, on September 29, Nike announced the performance of the first quarter of FY2023 (June-August). In the censorship of the asset liability statement of the performance report, Nike said that its inventory increased by 44%over the same period last year to $ 9.7 billion. The company claims that this is mainly due to the increase in transportation inventory due to continuous supply chain fluctuations.
Nike executives said that the inventory in North America alone has increased by 65%over the same period last year, reflecting the delayed delivery of the past two quarters and the holiday orders reached in advance in advance. This has also led to the sale of several seasons at the same time. The executive said that because of this, "we decided to accept these inventory and clearer them more positively in order to place the latest and best inventory in the right position and in front of consumers."