ARA: 90% Of Retailers In COVID Stock Battle
The Australian Retailers Association (ARA) has revealed 90% of its members are battling stock disruptions related to the COVID19 crisis, with short supply further straining revenue growth.
Reported by AFR, the ARA claims retailers such as Kmart, Bunnings and Super Retail Group are likely missing out on millions of dollars in sales from stock supply issues, compounding other COVID-related hardships.
The association has revealed many retailers cancelled, or reduced, orders following the accent of the coronavirus pandemic earlier this year, only to be faced with unprecedented demand amid lockdown restrictions.
Many retailers who expected low demand experienced the contrary, and in turn were not prepared from a stock point of view.
Global coronavirus-related restrictions have also hampered international supply chains, affecting shipments out of locations such as China to many importers and distributors.
The news comes as online shopping continues to climb amidst the coronavirus pandemic, with Super Retail Group reporting a 44.4% jump in online sales in FY20 – around 10% of total sales.
Home improvement continues fare notable demand in Australia, as homebound consumers look to beautify their surrounds during social distancing restrictions.
ARA Chief Executive, Paul Zahra, has encouraged retailers to address inventory issues, with stock issues likely to exacerbate leading into the Christmas trading period.
The news comes as most local retailers continue to upgrade their digital intelligence and e-commerce functionalities, with Wesfarmers ramping up its integration of Catch.com, and Bunnings adding to its Click & Collect and e-shopping features.