Retailers are overstocked on clothing, and some are packing it away in hopes of selling it in future seasons.
Kohl’s (, ) Gap (, ) Carter’s (), and other chains have said in recent weeks that they will hold some unsold merchandise in their warehouses and put it back on shelves later this year and in 2023. It’s a strategy known as “pack and hold.”
“We’re confident that we will be able to integrate our pack and hold inventory with future assortments,” Gap finance chief Katrina O’Connell said on an earnings call with analysts last week. Gap plans to stow away shorts, short-sleeve t-shirts and tank-tops.
The retailer said that its inventory increased 37% during its latest quarter, with 10 percentage points of the increase resulting from pack and hold. Read more at CNN Business.