Dive Brief:
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Lululemon, Ann Inc., actress Jane Seymour’s furniture line, and other retailers are noting in earnings reports and elsewhere that the prolonged labor talks at West Coast ports are hurting inventory and sales. Lululemon reported last month that it has one million units stuck at the ports.
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But discount consolidators like TJ Maxx or Burlington could benefit, according to investment firm Cowen & Co.
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The shippers and terminal operators at 29 West Coast ports, including most prominently Long Beach and Los Angeles, asked the dockworkers union for federal mediation in the dispute Dec. 22, something the union has resisted so far. The International Longshore and Warehouse union workers have been working without a contract since June.
Dive Insight:
Union workers admit that negotiations at West Coast ports have been slow, but insist they’re steady. More businesses are feeling the effects of the work slowdown though, with several retailers, delivery services, and manufacturers all forced to deal with lack of inventory or to find alternate, often more expensive, ways to get their materials and goods from Asia.
"Fashion-driven retailers are most at risk," reported Cowen & Co., though discount retailers like TJX Companies "could have upside benefit on inventory dislocation."
