Retailers of All Kinds Struggle to Get Goods

July 27, 2010  by in UnCategorized   

By Home Furnishings Business in Delivery on July 28, 2010

Limited space and high freight rates make furniture retailers by no means the only ones struggling to get goods on the floor, the New York Times reported Tuesday.

Despite paying freight rates two or three times those of last year, retailers are getting merchandise on the floor after their promotions began, or sometimes too late. Examples in the Times report include grills for a Father's Day promotion at Cost Plus World Market arriving the holiday; hangers at for the Container Store arriving after the sale began; and fans and portable chairs for True Value hardware.

The reasons for the constriction and delays include ocean carriers' slowness to bring back on line more than 11 percent of the global shipping fleet idled last year; a move to "slow steaming" at slower, more fuel-efficient speeds; and essentially no production of new shipping containers.

"All my customers, they're having a terrible time," said Steven L. Horton in the report. He is principal at Horton Global Strategies, a freight-contract negotiator. "With the increased cost and them not knowing if they're even going to get the space or equipment, it's a weekly battle."

Retailers and suppliers experiencing higher freight and capacity issues include names such as Mattel, Polo Ralph Lauren, Jones Apparel Group, Costco, VF Corp., Big Lots and Lifetime Brands.