Penneys issues warning to customers as autumn/winter inventory delays expected
The delays are due to freight and port disruptions.
Penneys has issued a warning to Irish customers as autumn and winter inventory is expected to be delayed due to freight and port disruptions.
"We are experiencing some delays to the handover of some autumn and winter inventory caused by port and container freight disruptions," a spokesperson said on Monday.
"These delays are expected to reduce the inventory at the year-end by some £200m compared to expectation with a corresponding increase in cash on hand."
On Monday the popular retailer said that sales of its autumn and winter ranges have started well with inventory during the last lockdown increasing by £400m above normal levels.
Following the reopening of all Penneys stores, "inventory levels have returned to normal", according to the retailer.
It added that all spring and summer inventory brought forward from last year has been sold and the autumn/winter inventory held over from last season will be sold in the coming months.
The spokesperson added that "customers came back to our stores with enthusiasm" as "sales reflected some pent-up demand with very high basket sizes" and "very strong trading" after stores had reopened.
"Our sales in the fourth quarter were affected by the impact on footfall as a result of the changes in public health measures in our major markets to control the spread of Covid-19 and its Delta variant in particular," the statement said.
"However, we have seen a significant improvement in trading as the period progressed."