Eyeing Secondary Markets to Better Manage Excess Inventory

As retailers and brands pivot to meet the demands generated by a massive shift to e-commerce, there’s a renewed focus on inventory management, which includes finding ways to reduce swollen inventory levels created when physical stores were closed this past spring. Julie Hutchinson, who works in business development and serves as the spokeswoman for the Parker Lane Group, said the environment requires retailers and brands to rethink inventory management, including looking at excess inventory options such as re-commerce. The Parker Lane Group offers stock management solutions for fashion retailers, which includes AI-powered reverse logistics and other services. Here, Hutchinson discusses the challenges brands and retailers face and what strategies and options can be deployed to manage inventory following the disruptions of the COVID-19 pandemic. WWD: What are some of the options for retailers and brands who are sitting on excess inventory? Julie Hutchinson: Brands have several options regarding excess inventory. They can try to clear stock with excessive discounts as well as sell to jobbers or discount outlets. However, unmanaged re-sale and discounting can affect brand equity and lead to sales cannibalization. Brands can also consider canceling orders with suppliers, destroy unsold stock or recycle. Unfortunately, each of these options comes at a financial

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