Trade protections and regulatory restrictions are a bane to any manufacturer looking to liquidate excess inventory. They lead to decreased cost recovery and increased liquidation time for unsold inventory clogging up a warehouse.
Imagine having to throw away $30M of toys because your excess inventory costs are so high it's cheaper to dispose of than store them. While that financial write-off hurts, the unknown environmental costs
Currently, retailers in the US are facing $45 billion of excess inventory, up 26% from 2021. The good news is that the supply chain and finance teams responsible for clearing inventory have options.