The holiday shopping season is in full effect as Thanksgiving week begins, and retailers are nervous.
Multiple big-box stores continue to struggle with an inventory overhang stemming from the pandemic boom, leading some to forecast their uncertainty, even as they create opportunities to entice consumers.
Data from the research group Factset show inventory levels among retailers including Walmart, Target, Amazon and Best Buy remain significantly above pre-pandemic levels. It’s a consequence of the end to the stay-at-home buying frenzy that snarled supply chains worldwide.
Now, to manage and clear the glut, the companies are leaning into special promotions, especially for products such as electronics, home goods and some apparel.
But those sales events are also coming at a time of a slowing economy and the ongoing weight of inflation, retail executives say. That has led some companies to exercise caution in their forecasts for the most consequential shopping season of the year.
