Retailers are Telling Suppliers to Stop Sending Inventory

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Well, in another sign of impending deflation. Yes, I said it deflation, not disinflation, but deflation. We are seeing U.S. retailers on usual request to suppliers to stop sending new products. If you are paying attention at all during 2020 and 2021, the big story was supply chain issues. Nobody can get enough stuff. The shipping containers are months out and they have skyrocketed in price, and we just cannot get the stuff we need.

Demand is skyrocketing. There just was not enough stuff anywhere. And it took a long time for production to ramp up because there were other bottlenecks that prevented production from ramping up. Well, that is the exact opposite of what is happening right now. We are seeing retailers have so much extra stuff in their warehouses that they are telling their suppliers to stop sending them products.

And this is the kicker. Even if those items are selling well, this is absolutely the opposite case to what we had in the last couple of years. It is turning on a dime.

Timecodes
00:00 Retailers Are Stacked on Inventory
02:21 Portfolio Allocation Mastery Course
02:46 Retailers Inventory Levels Higher Than 2019
04:49 Inventory Sales Looking Possible
05:53 Retailers May Start Charging for Returns

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