Retail supply chains are showing signs of retrenching heading into the sector’s prime selling season. The Wall Street Journal reports that consumer-goods supplier Newell Brands says retailing customers are reducing orders for the fall more than expected, in the latest signal that merchants are moving aggressively to pare back bloated inventories.
The business behind Sharpie markers, Yankee Candle and other consumer products cut its sales outlook for the coming months, highlighting how big disruptions in supply and demand over the past two years are continuing to ripple through supply chains.
Big retailers are coping with big stockpiles of goods they ordered earlier this year to get ahead of shipping bottlenecks. High inflation and shifting consumer demand have reshaped the market, leaving suppliers like Newell making tough adjustments and ocean and trucking volumes stumbling just as the peak shipping season is supposed to be kicking into a higher gear.
Meanwhile, U.S. imports tumbled 2.9% from June to July while exports slightly increased, up 0.2%.
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