AP Photo / Nick Ut
Container ships line the docks at the Port of Los Angeles on Feb. 23. Dockworkers at nearly all West Coast seaports ended February hustling to load and unload cargo ships that had been held up amid a months-long labor-management dispute.
Sunday, March 15, 2015 | 2 a.m.
Spring is here, but you wouldn’t know it perusing the racks at Macy’s in Fashion Show mall.
Where floral dresses and sandals should be, wool sweaters and ankle boots crowd the racks. Mannequins that should be wearing bathing suits are clad in business casualwear.
Elsewhere around town, shelves that normally stock cutting-edge tech accessories offer gadgets most people installed months ago. Nintendo announced shortages of new gaming units, while furnishing wholesaler Softline Home Fashions Inc. reported $80,000 worth of backlogged curtains, pillows and home decor meant for Wal-Mart and Bed Bath & Beyond. Shipments of microwaves, computer components and other small electronics have been delayed, and even some pharmacies lag in restocking medication.
A nine-month labor conflict between dockworkers and West Coast ports ended late last month with a tentative agreement, but the ripple effect of the stalemate will be felt throughout the West for months to come. Shutdowns and work stoppages resulted in more than 50 container ships being anchored offshore, unable to unload. The backup is the worst in recent history and is expected to cost retailers as much as $7 billion in lost revenue this year.
For consumers, the slowdown has meant a lag in shipments of new products. Much of Southern Nevada’s retail goods come through West Coast ports.
A surfer rides a wave in Sunset Beach, Calif., as loaded cargo ships, with billions of dollars of cargo onboard, are anchored outside the Ports of Long Beach and Los Angeles.
Macy’s, for instance, reported about 12 percent of its first quarter merchandise had been delayed.
Many retailers planned ahead for delays and a possible strike by stocking up on winter offerings, even if it meant risking selling out-of-season merchandise come spring. The result is a patchwork inventory that has left many shoppers confused.
“Fourth quarter is retail’s bread and butter,” said Bryan Wachter, director of public and government affairs at the Retail Association of Nevada. “It’s when people are spending more and gifting more, and they want the latest fashions.”
If people can’t find what they want in local stores, they shop online, Wachter said. In Nevada, that has translated into a financial hit in lost sales tax revenue.
Meanwhile, automakers that depend on imported parts have had to lay off workers as they brace for delays in production.
But it’s not all bad news. As the backlog begins to ease, consumers may start seeing clearance sales to free up floor space and move outdated merchandise.
A few businesses even may benefit. Off-price retailers such as Marshalls and TJMaxx likely will get good deals on excess inventory that the stores can pass on to customers. Outlet malls likely will see more inventory as well, particularly on-season items, as parent companies look to split floor space.
Overall, however, the backlog is expected to keep retailers and consumers struggling to play catch-up for the remainder of 2015.
“Regardless of whether a store is in a strip mall, a high-end mall or on its own, it’s all affected the same way,” Wachter said. “You’re struggling to provide the product and service the consumer has come to expect and want from you.”
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