In today’s top retail news, Nike is facing strong headwinds as factories in Vietnam remain closed because of COVID-19, while Amazon is adding to its Same-Day Delivery network with three new metro areas. Also, The NPD Group says apparel sales are up 10% in the first eight months of the year on a two-year stack, and retailers are asking more of their employees as labor remains tight.
COVID-19 spikes and subsequent factory closures in Vietnam and Indonesia have caused Nike to lose 10 weeks of production since mid-July, leading to a revised short-term outlook for the company and warnings that demand will likely outpace supply for the next several quarters. Chief Financial Officer Matt Friend said some of Nike’s factory partners have begun to get their reopening plans approved, though factories in Vietnam aren’t expected to restart production until next month.
Retail giant Amazon is expanding its Same-Day Delivery service to three new metro areas, including Atlanta, Miami and Minneapolis, and expanding the offering in 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, D.C.
The U.S. apparel industry has generated $13.3 million more in revenue — representing a 10% boost — in the first eight months of this year than it did in 2019, according to The NPD Group. Sleepwear, intimates, socks, underwear and other basics top the list of apparel needs and wants among U.S. consumers looking for a wardrobe refresh.
Amid a national hiring crunch that’s hitting nearly every industry, retailers have been pulling out all the stops to attract workers, but some are also coming to terms with the fact that it’s time to make do with what they’ve got. Earlier this week, for example, Target said it’s cutting down on the number of seasonal workers it hires this year, instead giving 5 million more hours to existing employees.