Not an Ideal Predicament
Depleted revenue, compressed margins, a shortage of labor, plus an infrastructure not designed for an online volume consisting of 40-60% of total sales. Not ideal for fashion retailers. And beyond that, retailers experience up to 8 percentage points of margin loss on a digital order.1
Increased omnichannel shopping and shifting customer order fulfillment costs retailers 6 to 8 percentage points of margin. Read about the typical challenges faced by fashion and apparel retailers due to these shifts.
Omnichannel fulfillments comes at a cost to retailers, so how can retailers become omnichannel aware and find profitability in this paradigm? Read below to find out more.
In years to come, the extreme product shortages of the pandemic may seem like just another blip in the history of marketplace behavior, but they leave behind a permanent realization that the possibility of near-term events that can rapidly cause consumer demand to explode or supply to be interrupted is very real. Furthermore, these events seem to be happening more than ever before, and they can also defy market logic. Case in point – the recent unbowed demand for lumber despite prices that are more than four times the norm.
Fashion retailers have invested heavily to drive tighter assortments, dynamic allocations, and omnichannel inventory efficiency. But if a customer can't find her size, all that work is moot. In fact, the tighter the inventory, the more it exacerbates the size stock-out problem.
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