Retail Inventories at Record Levels

In June 2022, OM in the News blogged about excess retail inventories. Inventories are still at record levels, and stores are scrambling to clear out merchandise ahead of the holiday season.

Quite a difference from a year ago, when OM in the News posted about retailers chartering ships to get products in time for the holidays.

Needing to reset merchandise for the 2022 holiday season, stores and warehouses are scrambling to make space, getting rid of […]

Subway’s New Menu Revisited

OM in the News blogged about Subway’s new menu in July 2022. Subway changed its 57-year-old approach of having customers build their own sandwiches, and rolled out 12 chef-inspired Signature Series sandwiches to push customers to order by sandwich name or number.

Now the results are in. The results indicate an 8.4% increase in same-store sales from the quarter a year ago. For September 2022, the results are even better at nearly 11% year-over-year growth.

In 2021, sales improved […]

Skimpflation

As inflation is impacting the prices of products, many organizations are looking for ways to cut costs. One such approach previously examined by OM in the News is the concept of shrinkflation, when companies reduce the size of the product. In many cases, customers don’t notice the change is size.

Now, instead of reducing the size of the product, some companies are changing the ingredients, choosing cheaper alternatives. This approach is being referred to as skimpflation.

One example of […]

Butter Illustrates a Dependent Demand Shortage

Staffing issues and lower milk production in the first half of the year have led to a dairy shortage, resulting in less butter on store shelves and in storage facilities.

Butter prices increased 28% from January 2022 to September 2022. Factors leading to the increase in costs of food production include severe weather and the Russia-Ukraine war.


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