Why This Retailer Is Losing Millions in Holiday Sales
The coronavirus pandemic isn't over -- not from a health-related standpoint or an economic one. Sure, the jobs market is booming, and the national unemployment rate recently reached its lowest level since the start of the crisis. But supply chain issues fueled by the pandemic are continuing to wreak havoc on retailers and consumers alike. And one retailer in particular may be in for a very disappointing holiday season due to ongoing bottlenecks and delays.
As of late November, Gap (NYSE: GPS) had already lost $300 million in sales heading into the holiday season. And the reason boils down to inventory constraints.
The company said that factory closures spurred by COVID-19 outbreaks and backlogs at ports have created a scenario where merchandise isn't hitting shelves as fast as the retailer expected. Not shockingly, Gap's stock price is down almost 32% over the past month. And if its inventory issues don't begin to resolve themselves, the company risks a disastrous fourth quarter that could really shake investors.
Source Fool.com
