“The formula has always been you create inventory, borrow against the inventory and then sell the inventory,” he said. But when you can’t sell the inventory because no shops are open and no one is buying, the whole chain falls apart. Already, Mr. Chirico said, his stores had accepted their clothing for spring — which is now sitting in darkened rooms. Mr. Smith said he had “never seen anything like” the coordination taking place across the industry. “Retail after the tariffs was already struggling,” said Deborah Weinswig, founder of Coresight Research, an advisory and research firm that specializes in retail and technology.

Source: International New York Times March 23, 2020 11:15 UTC