“Supply chain disruption creates a unique sourcing opportunity for off-price retailers, primarily for packaway inventory,” wrote BofA in a report.
Supply chain disruptions have caused problems for many retailers, but for the off-price sector, they may provide an opportunity.
“Many retailers will cancel or not accept late deliveries given the seasonality/changing trends of products. Off-pricers can then procure these items at steep discounts and either pack them away for later seasons or use them to supplement current store inventory.” To be sure, the off-price category is not immune to pandemic pressures. Analysts note that these companies are feeling the squeeze of higher costs, and expect moderation as the year passes and pressures ease.
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