Kohl’s Sees Retailers Struggling on Clothing, Shoe Supplies This Holiday Season
Kohl’s Sees Retailers Struggling on Clothing, Shoe Supplies This Holiday Season
(Bloomberg) -- Clothes and shoes could be among the hardest gifts to find this holiday season, according to Kohl’s Corp. Chief Technology and Supply Chain Officer Paul Gaffney.
Gaffney said his company is well-stocked for the holidays and doesn’t foresee a problem, but added that countries with the most recent factory closures and disruptions are also the largest manufacturers of apparel and footwear.
“While the whole supply chain is disrupted, those are the two consumer categories that have had the longest and deepest disruptions,” he said in a phone interview Wednesday. “We feel good about those categories, but those are the riskiest ones.”
Kohl’s inventory for the holidays has been closely watched by investors -- the company’s stock reeled last month after Bank of America downgraded its investment recommendation by two levels, citing supply-chain concerns.
Gaffney said the retailer has worked to mitigate disruptions ahead of the holidays by making adjustments at the manufacturing level and in stores. The company has teamed up with others to charter private vessels and has also started to move smaller shipments to the U.S. from Asia, he added.
“We’re going into the holiday feeling good about the inventory we’re going to have,” he said.
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