Today in Retail: Supply Constraints Hold Adidas Back; Poshmark Struggles With Apple’s Changes

In today’s top retail news, strong demand coupled with supply chain bottlenecks are pushing inflation higher and causing Adidas to project $1.2 billion in lost sales over the coming months. Also, Poshmark, despite a supply advantage, reported lower-than-expected sales in the third quarter as it grapples with the changes Apple has made to privacy settings, and Netflix is partnering with luxury brands ahead of the season premiere of “Emily in Paris.”

Growing Concerns About Inflation, Supply Chains Garner ‘All Hands on Deck’ Response

President Joe Biden spoke with chief executives from Walmart, Target, UPS and FedEx earlier this week in an effort to get more merchandise moving faster, as snarled supply chains and shipping delays continue to concern retailers, consumers and others as the holidays approach. Illustrating the perfect storm of supply and cost issues, the U.S. Bureau of Labor Statistics said inflation has hit a 30-year high, rising at an annual rate of 6.2%.

Adidas Expects $1.2B Hit to Sales as Supply Constraints Rage On

German sportswear giant Adidas is expecting its sales to take a €1 billion ($1.2 billion) hit over the next two quarters because of supply chain bottlenecks that are expected to continue into the early part of 2022. Chief Financial Officer Harm Ohlmeyer said that at the end of September, 30% of global inventory was in transit, and the company has lost nearly 20 weeks of production because of factory closures in Vietnam.

Poshmark Sales Hurt by Apple Privacy Changes

Resale marketplace Poshmark reported lower-than-expected sales in the third quarter as the company grapples with the impact of Apple’s privacy changes in its iOS system, the latest digital firm to note a setback because of the update. The results stand in contrast to reports earlier this week from competitors thredUP and The RealReal, which said they see an opportunity to make headway as rival retailers struggle with supply chain issues.

Netflix Embraces Contextual Commerce With Fashion Items Tied to Content

Ahead of the second season of “Emily in Paris,” which will debut on Dec. 22, Netflix has teamed with several luxury brands to offer selections of clothing related to pieces worn by star Lily Collins and other characters in the series. Netflix first launched its eCommerce shop in June with merchandise from hits such as “Stranger Things” and “The Witcher,” as well as branded Netflix apparel.