Retailers could adopt more “tenable inventory models” for 2021 to address scarcity and reinforce small inventories.
Disruptions brought on by COVID-19 forced retailers to adapt to new realities and digital strategies. Challenges faced by the retail industry this year, could help brands learn valuable lessons and grow in 2021.
With scarcity of products, brands and retailers become more conservative with their pricing and promotions. Prices this year were equal to or lower than previous years, despite Black Friday sales crossing over $9 billion. 2021 could see a leaner retail sector with smart pricing and marketing.
Further, with lockdown freezing inventory in many sectors, especially apparel products, ran out of stocks. To tackle this, many retailers adopted the “less is more” approach, borrowed from luxury brands, and curbed their inventories to slow the supply chain and align with the shopping trends.
[4 minute read]