Fashion Brands Must Act on Inventory Overhang or They’ll go Out of Style

The last two years have been a rollercoaster for fashion brands. The supply chain disruptions of 2021 led to many merchants struggling to get their hands on enough inventory, and then overbuying to compensate. But now, with an economic downturn looming and the threat of reduced spending, companies that overstocked during the pandemic are stuck hoarding mountains of goods in their warehouses that they can’t shift.

In fact, according to a recent survey by Inventory Planner, 44% of fashion retailers have surplus goods they’re desperate to offload, accounting for almost 20% of their entire stock holding. The poll also found that globally, one in four fashion stores wrote off excess stock as a loss last year, at huge cost to the business.

The danger of sitting on inventory for too long is clear. Target saw its shares tumble after it slashed prices to clear out unsold inventory. And

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