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Fashion’s Supply Chain Falls Victim to Coronavirus

apparelApparel companies rely heavily on materials and labor in China. Now, factories are shutting down, putting pressure on fashion’s supply chain. In this way, the Coronavirus is predicted to cause delays and shortages even after the factories open again. The supply chain is rapidly approaching the tipping point: one analyst predicted that out-of-stocks for fashion in the United States could be just a couple of months away.

It’s only a matter of time before the factory shutdowns become noticeable in stores. “The next few weeks should be critical, as further delays in the restart of production could begin to result in out-of-stocks at US shelves as early as mid-April,” Wells Fargo analyst Edward Kelly wrote in the note.

Read the full story at Quartz.