With fashion retailers sitting on a glut of unsold clothing, shoppers can expect serious bargains once shops reopen. The hit to profit margins could be dire.
Merchandise has piled up at stores since they were closed by lockdown measures. For all U.S. retailers, the inventory-to-sales ratio—a measure of how much stock they hold relative to monthly sales—hit an almost 11-year high of 1.53 in March, according to the Federal Reserve Bank of St. Louis. April data, due to be released in a few weeks, will likely show another jump.