In the world of fashion, usually Spring merchandise is purchased in the fall. As we push through Spring and shelter-at-home orders remain in place, retailers are now facing a dilemma: there’s an enormous amount of inventory in the midst of COVID-19 that will possibly never leave the store shelves. That’s because customers rely more on products than clothing purchases.
In the midst of the pandemic, countless retailers are now closing their doors and offering online deals instead of in-store purchases. still, there will surely be plenty of additional markdowns in preparation for summer and fall once stores are reopened.
Stores are finding themselves in a world of excess as industry prepares for a possible recession. Retailers purchased Spring apparel during a prosperous and stable economy months ago — and when a new reality hits today, they are now faced with the need to determine whether to unload the sluggish, surplus inventory that probably won’t sell:
There’s a countless amount of products either sitting in the pipeline or sitting on retailers’ shelves. This will need to be washed out.
It will also present an opportunity to diversify their platforms and expand beyond conventional approaches, as brands exploit their internet, retail, and factory store networks for sales. It is an extraordinary retail moment, which calls for new measures; deep discounts which conventional outlets do not suffice.
A B2B Stock Liquidation solution lies in one way retailers can recapture revenue and offset loss. The way to go is by working with a secondary market specialist who can create a custom B2B online auction marketplace.
Rack 37 B2B marketplaces are personalized and configured according to the needs and objectives of each retailer.
First-ever recognized B2B stock liquidation platform in India
If you’re ready to leverage the secondary market demand and give a second life to your returns and surplus inventory by selling to a new purchaser business, schedule a demo today.
Many Fashion Brands Are Quickly Establishing A Multichannel Sales Approach—With a Heavy Emphasis Toward Online Sales—While Trying To Maintain An Even Ratio Of Inventory To Sales. That Isn’t An Easy Task Considering-
1) Online Sales Bring Higher Return Rates
2) Lower Footfall In Stores Can Lead To Excess Inventory Woes
3) The Try Before You Buy Business Model Is Growing Quickly And Will Further Increase Return Rates.https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8032083560299713101
A Small Amount Of Returns Here And a Few Shelf Pulls There Can Quickly Pile Up. Case In Point: A Certain Apparel Brand Is Currently Dealing With $4.3 Billion Worth Of Unsold Clothing After First Reporting a Drop In Sales Last Year.
This Build Up Of Unsold Clothes—Measuring In The Billions Of Dollars—Does Not Happen Overnight. The Top Three Signals Sellers Look For Include:
An Overall Drop In Quarterly Sales.
Decreased Foot Traffic In Stores While Online Traffic Increases.