Overstocks: a problem for 69% of independent businesses

While the brands and department stores have deplored the disappointing summer sales, the results are not rosier among the independents. The FNH (national clothing federation) thus confided last week its dismay at the “broken spring” that the sales have become. An investigation carried out by the SDI (union of the self-employed) now provides details on the problem of stocks inherited after the rebate phase.

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Conducted on July 23 and 24 among 512 companies with 0 to 19 employees, the survey shows that 58% of them draw a negative balance for the period, and 69% would continue to be victims of overabundant stocks. In detail, no less than 40% of the panel estimates that it still has between 30 to 40% of stocks to sell. And they are almost 40% to indicate having more than 40% of remaining stocks to sell.

In any case, for 69% of the respondents, the rate of remaining goods is higher than normal, of which 19% even mentioning much higher levels. On the other hand, 30% of companies speak of equivalent stocks. And only 2% cite lower stocks.

Faced with these levels of stocks, what are the independents waiting for to break the deadlock? Last spring, the government had put in place an aid dedicated to stocks, of which FashionNetwork.com had detailed the principle. Today, 74% of the structures consulted by the SDI believe that the system should be renewed, following the very mixed balance sheet.

Balances without “commercial interest”

The survey indicates that 66% of the panel no longer see any commercial interest in the sales. And for good reason: 61% of the companies questioned would have experienced a lower result than the 2020 summer sales, against 36% speaking of equivalent results.

They are 11% to speak of lower results of 50-60% than those of the summer sales 2019. And 10% speak of sales falling by 40-50%. To this are added two thirds of the panel citing falls ranging from 20 to 40%. In the end, 67% of respondents believe that postponing the launch of the sales has not been satisfactory.

But, like most brands, had these businesses preceded the sales with promotions and other private sales? No, answer 78% of structures. And for the 22% who have tried them, 58% say they are satisfied with the results generated. The very relevance of the balancing mechanism is therefore increasingly called into question.

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