![]() And Foot Locker said it is still working with its supply chain partners to optimize the flow of goods. Retailers have had to work to incorporate these extended lead times into their plans. But import levels are still elevated, and it's still taking longer than normal for facilities to process containers.Īt the Port of Los Angeles, container dwell on the terminal dropped to an average of 4.2 days in April, down from its peak of 5 days in February, while street dwell time remained flat at an average of 6.6 days, according to the port's monthly press conference. There are signs that port congestion is beginning to improve. "Inventory flow and receipt velocity did improve as delays began to ease through the first quarter, and we expect further improvement in Q2, which should reflect positively on our inventory levels." "As it relates to the West Coast ports, there is some good news to share," CEO Richard Johnson said on the company's earnings call.When stores closed, Foot Locker canceled orders from suppliers and offered promotions in an attempt to move inventory. But when demand returned at higher rates than expected, it had to deal with much slower supply chains, which complicated inventory building. The retailer's inventory level was down 30% YoY for Q1 2021, according to financial filings, though inventory was up more than 20% YoY at this point in 2020 as a result of store closures. ![]() Foot Locker's inventory remained leaner than it would like in the most recent quarter, but executives said that the port congestion on the West Coast - which it had previously cited as a cause of inventory issues - is beginning to improve, according to the company's earnings call. ![]()
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