Retail Re-opening: let's talk about Inventory?

Supply chain management has to consider both in-store and online operations. A quick and adapted response to consumer demands depends on the collection and monitoring of relevant data regarding sales and consumer preferences. For physical stores, brand managers must prepare for the next fall season ahead as things are not expected to get back to normal that soon. Brand managers will have to be inventive in managing inventory stuck in closed stores to make way for the next season’s collection. Inventory decisions must guarantee that brand managers have what they need as soon as the shops reopen, but also be adjusted to an expected decrease in sales in comparison to previous years.

Control the flow of inventory

Inventory is a sensitive topic to every business. There is an equilibrium between overstocking, which requires space and investment, and underestimating sales, which directly leads to losses. For retailers operating online, inventory becomes even more important as consumers buying online tend to prefer short delivery times. This calls for an accurate monitoring of sales and demand information.

Prepare the next season ahead

As production from most factories stopped during the lockdown period, footwear retailers should anticipate their orders for the next season as soon as possible so as to avoid shortages.

Consider kid’s footwear a priority

As schools are about to reopen in the next fall semester, kid’s footwear will continue to sell. These sales may suffer an eventual delay if schools’ opening occurs later than usual.

Discontinue current collection items

Spring footwear of the current season may be discontinued, but some may be kept in stores for current sales as stores reopen.

Be flexible

Some strategies to get rid of current spring/ summer items could include the delay for next year’s collection, to keep some items to mid-season sales or to relegate others to outlet facilities.

In this new prospect we are all living the World Footwear has prepared a Guidebook to support retailers and brand managers in this prospect by providing 30 business tips and 70 health and safety recommendations that might be useful in the return to their activities. Trends and Business Tips focus on Inventory; New Shopping Experience; Comfort at Home; Buy Less, Buy Better; Supply Chain: From Global to Local; All Together: Cooperation to Thrive and Digital Presence. Health and Safety Recommendations cover: Re-opening the Store; Access and Circulation in the Store; Social Distancing;  Spaces; Individual Protection Measures; Ventilation; Cleaning and Disinfection; Payments; Orders and Mail; Returns, Exchanges and Repairs; Other Considerations in Store; E-commerce and Online Presence and Employees.