Clothing Retailers Fighting a Tremendous Supply and Demand Imbalance

Worldwide, unsold clothing stockpiles are skyrocketing. In fact, McKinsey estimates that the worldwide supply of unsold clothing is valued at anywhere from $168-$192 billion, a staggering figure that’s around double the normal levels.

This backlog was largely spurred by the COVID-19 pandemic, adding to the variety of stressors retailers are already trying to navigate as the industry gets back to its feet in 2021.

To discuss how they’ll meet that challenge, host Hillary Kennedy invited Jake Rheude, Vice President of Marketing for Red Stag Fulfillment, to share his expert insights.


The core issue, Rheude said, is a lack of upstream communication within retail supply chains. However, in the short term, that won’t fix the problem – meaning strategies that double down on omnichannel sales and marketing are in order.

Rheude said he has a simple question for struggling retailers – “Are you everywhere your customers are?”

Rheude and Kennedy explored how retailers can work to get there by embracing technology, evaluating and strengthening their supply chains and partnerships with suppliers, maintaining customer loyalty, and more.

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