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Shortages caused by supply chain delays have created problems for many companies. Managing Partner Matt Katz was featured in “How Off-Pricers Are Poised to Win Thanks to Late Inventory” in ModernRetail. He shares insights about how an abundance of out-of-season inventory fueled by these delays creates opportunity for off-price retailers.
Matt explains how supply chain delays have created an abundance of out-of-season inventory, “Congestion at the ports and delays upstream in the supply chain have resulted in difficulty of products getting to the stores’ shelves. We’ve all experienced that, and it’s also resulted in inflationary pressure. What will happen as a result of that is the potential for products to be out of season when it gets through the port. Out-of-season products are always products that the discount channel likes.”
He continues to explain the opportunity that is created for off-price retailers, “Off-pricers have never been constrained by product shortages. We’re an economy that has an abundance of products available. The challenge for the off-pricers is to be able to create an assortment out of the inventory that’s available and provide the freshness to the consumer.”
Read the full article here.
Matt Katz serves as a Managing Partner and heads the Retail & Consumer Packaged Goods and Private Equity practices at SSA & Company