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Off-Price Retailers Gain Edge With Flexible Inventory Strategy

Off-price retailers are gaining competitive advantage through distribution models that allow inventory to be held at regional centers rather than flowing directly to store shelves, executives said this week.

The approach provides operational flexibility to respond to seasonal demand shifts and supply chain disruptions, according to company leadership discussing second-quarter results.

Meanwhile, ocean freight costs remain elevated despite easing supply concerns. Bunker fuel expenses for container vessels have more than doubled year-to-date, though availability pressures have begun to moderate.

Industry experts point to carrier partnerships as critical tools for shippers managing cost pressures. Companies that maintain close relationships with logistics providers are better positioned to navigate the current environment.