Why All The Shipping Containers Around Sioux Falls Stores?

Perhaps you have seen shipping containers in parking lots of big-box retailers around Sioux Falls. What is the reason?

You may remember hearing about 100 cargo ships that were backed up off the coast of California last fall. Now those ships are unloaded and all those products have reached their destination; big box stores.

Most large retailers in the US use the "just in time" supply chain. As soon as a truck arrives, it's unloaded and the products are put on the floor. Most stores don't have a huge storage room in the back so they may be renting containers to store extra stuff. That is what could be going on here.

Retailers say not enough of these products are being purchased by consumers due to various reasons including high inflation. All this extra inventory could mean deep discounts this summer, TheStreet reports.

Major retailers have reported that inventory levels are at a two-year high. Target is 43% overstocked, Walmart 33%, Home Depot 32%, Costco 26%, and Macy's 17%. CNBC reports that demand for discretionary items like TVs, small kitchen appliances, and bicycles has fallen in the face of higher prices for gas and groceries.

However, consumers could soon be facing another supply chain shock. Covid lockdowns in several large Chinese cities like Shanghai, home of the world's largest port, caused exports to cease for several months. The lockdowns have since eased, but a backlog of tens of thousands of containers could spark a new round of supply chain issues in the near future.