Andrew Barone & Megan Flaherty Talk to the Commercial Factor about all Things D2C and supply Chain Impact

As the retail sector continues to endure the severe economic disruptions of 2022, Andrew Barone and Megan Flaherty of Rosenthal & Rosenthal explain how brands must work with experienced financing partners while diversifying distribution channels through wholesale partnerships and their own direct-to-consumer channels.

BY ANDREW BARONE AND MEGAN FLAHERTY

Inflation concerns, rising interest rates, supply chain disruptions and overall economic instability are topping headlines daily and impacting nearly every aspect of the retail sector. Consumers have become hyperaware of these challenges and have consciously shifted their spending habits, cutting back in certain areas and opting to spend their dollars differently than they did during the height of the COVID-19 pandemic. This shift has resulted in backlogged warehouses, large quantities of unwanted inventory and cancelled orders. Even the biggest retailers, like Target, Walmart, Best Buy and others, have taken a short-term hit to their bottom lines as they seek to right size inventories by slashing prices to make room for higher-demand goods like back-to-school and holiday products.