Apparel Retailers are Holding on to their Excess Inventory to Sell Later. Will it Work?

As retailers and brands continue to deal with the overstock that resulted from closing their stores during the pandemic, some have adopted a new tactic. Rather than deeply discounting and liquidating excess inventory, brands are packing and holding their overstock until next spring, in hopes that they can sell it then, on-season and at full price. While risky, a twofold benefit may be attainable: one, they can protect their brand integrity, and two, they can avoid the financial loss of deep discounts; once consumers become accustomed to reduced prices, they no longer want to pay full price. 

As promising as the move may seem, there is a distinct advantage that some have over others: affordability. While large brands may be able to leverage this tactic, other, smaller brands and retailers may not have the liquidity to do so and survive. And what about cancelled apparel orders? Will the combination of packing and order cancellations backfire? 

In a world where consumer demand shifts on a dime and fast fashion often leads the design and supply of apparel, the decision to pack the excess in the hopes for selling next year also begs the question: what will happen if the items stored aren’t “timeless” enough? 

While there are key questions still left to be determined, some things are clear: 

• Some companies cannot afford to gamble on the possibility of packing and holding inventory they’ve already paid for, so they have to decide what to do with their excess inventory now
• If the pack-and-hold strategy does not work, those brands who are trying it will still be left with excess apparel 
• Whether now or in the future, both of these scenarios need a liquidation strategy in place to ensure they mitigate losses

So, assuming you’re a brand or retailer whose pack and hold strategy falters, or assuming you cannot afford to pack and hold, how can you offload your excess inventory while:

1: preventing losing a significant amount of money?
2: protecting your brand? 

With an online auction strategy—like the one B-Stock offers. 

We help retailers and brands sell their excess inventory via their own private B2B online auction platform to thousands of vetted business buyers from all over the world.  Each auction marketplace is scaled and customized  to each company’s needs, allowing them to set the pace at which they sell, and who they sell to—protecting their brand name. It’s why nine out of the top 10 U.S. retailers and some of today’s most recognizable brands are currently working with us to sell their excess and returned goods. What’s more, a B2B marketplace offsets substantial loss for returned or excess inventory—even comparable to reprocessing back on shelf or returning to the vendor—when done right. 

Let us help you offload your excess inventory by scheduling a demo today.