Major department stores are slashing prices to get rid of excess inventory
Late in a summer when Walmart and Target have offered discounts on certain items that had grown into surpluses, other major U.S. department stores have been
Late in a summer when Walmart and Target have offered discounts on certain items that had grown into surpluses, other major U.S. department stores have been telling investors they will keep slashing prices as they deal with a glut of unsold items.
Kohl's said last week that its inventory was 48% higher than where it stood at the same time last year. Although it attributed some of the increase to investments in its Sephora partnership and other strategy decisions, CEO Michelle Gass said the company plans to increase promotions and get "aggressive" on clearing excess inventory.
Gass said Kohl’s was not alone in doing so.
"We acknowledge that many others are taking similar actions, which will likely make for a more promotional environment in the near term,” she said.
Macy's and Nordstrom also warned Tuesday that they were sitting on more inventory and were moving to cut prices. Macy's said its inventory rose by 7% from a year earlier, while Nordstrom's increased by 10%.
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