Today in retail: Nike hit by factory closures
In today’s top retail news, Nike faces strong headwinds as factories in Vietnam remain closed due to COVID-19, as Amazon adds to its daytime delivery network even with three new metropolitan areas. Additionally, The NPD Group says apparel sales grew 10% in the first eight months of the year over a two-year period, and retailers are asking more of their employees as the workforce remains limited.
Factory closures cause more than 10 weeks of lost production for Nike
Spikes in COVID-19 and subsequent plant closures in Vietnam and Indonesia have cost Nike 10 weeks of production since mid-July, prompting a revised short-term outlook for the company and warnings that demand is likely to exceed supply in the coming quarters. . CFO Matt Friend said some of Nike’s partner factories have started getting approval for their plans to reopen, although the Vietnamese factories are not expected to restart production until next month.
Amazon Adds Same Day Delivery to Atlanta, Miami and Minneapolis
Retail giant Amazon is expanding its same-day delivery service to three new metropolitan areas, including Atlanta, Miami and Minneapolis, and expanding its offering to Chicago. Last month, Amazon also added Baltimore, Charlotte, Chicago, Detroit, Houston and Tampa to the same-day delivery roll call, joining Dallas, Nashville, Philadelphia, Phoenix, Orlando and Washington, DC.
NPD: US clothing market up 10% from 2019
The U.S. apparel industry generated $ 13.3 million more in revenue – a 10% increase – in the first eight months of this year than in 2019, according to The NPD Group. Sleepwear, underwear, socks, underwear and other basic items top the list of clothing needs and wants of American consumers looking for a wardrobe refresh.
Retailers rely on employees to do more when labor shortages
Amid a nationwide hiring crisis hitting nearly every industry, retailers have gone out of their way to attract workers, but some are also accepting that it’s time to do with what they have. Earlier this week, for example, Target said it was reducing the number of seasonal workers it hires this year, instead of giving existing employees 5 million hours of overtime.