Drapers Comment: Retailers are Deep Storing Rather Than Discounting

Fashion-Enter’s CEO Jenny Holloway was recently asked by Drapers to comment on the practice of ‘deep storing’, whereby a retailer will store unsold winter stock, such as heavy coats, to sell the following year. 

Retailers are wanting to protect their profit margins and the idea of storing stock and moving away from heavy discounting has grown in popularity since Covid rocked the boat over the last few years.

Jenny commented in the article titled ‘Retailers ‘deep storing’ unsold stock for next winter’ By Zoe Hu – “What we are hearing is that there is more being put away this year than discounting. Retailers are looking after their margins, which has got to be the right thing to do. But this means the OTB (open to buy) budget is going to be less next year because they’ve already got stock.” 

The practise also shakes up the drive for new seasonal collections with other retailers saying they are now ordering later than usual so that they can react to what is going on in the market.

With the cost of living crisis and economic downturn suppliers are concerned that deep storing will result in an empty order book as the year progresses. However, while deep storing makes environmental and economic sense the desire for ‘newness’ is still there. This is where Made in the UK can really shine by working alongside retailers and reacting to what consumers want, tweaking those best sellers with small run production and dropping throughout the season.

Tap here to read the full article published on Drapers Online 13th January 2023