GAP protects brand loyalty through air freight
GAP protects brand loyalty through air freight
Fashion brand Gap is just one of many clothing companies to have seen supply problems hit sales . Company ’ s CEO Sonia Syngal says Q3 saw “ acute supply chain headwinds affect our ability to fully meet strong customer demand .”
She added that GAP had counteracted supply problems by investing heavily in air freight to service pre-Christmas demand , and so prevent brand loyalty from being eroded .
Fashion retailers across the board are experiencing similar problems .
Speaking to Vogue Business , Nikki Baird - retail innovation VP at retail tech firm Aptos - said : “ Everyone is telling the same story : ‘ We can ' t get products ’.”
In the US , booming consumer demand has put pressure on port and warehouse capacity , while labour shortages have meant fewer drivers on the road and fewer products being delivered in a timely fashion . According to a recent National Retail Federation report , journeys that previously took 25 days are taking up to 60 . And 70 % of respondents said they have had to add two to three weeks to their supply chain timetables . says . “ You ’ ve got to keep them coming back for more .”
One way they can achieve this - other than spend a fortune on air freight - is to be strategic about inventory , says Dove . “ Retailers can allow stocks of low-demand or low-margin products to run low , in order to keep traffic drivers in stock 100 % of the time .”
50 February 2022