In the apocalyptic retail era of mall and department store closures, one segment is thriving. Off-price retailers—or stores that sell high-quality goods at low prices—are forging ahead and growing. These shops, which typically sell last season’s items or a variety of name brand apparel and products, consist of merchandise collected from canceled orders, returns, and closeouts.

While the shuttering of locations from big name brands like Barneys New York and Sears continues to garner headlines, off-price retailers are experiencing unprecedented expansion. Case in point: Ross Stores already reached its goal of adding 100 new stores by the end of this year, increasing its top-line sales by roughly 6.5 percent in Q2, according to Retail Dive. Meanwhile, fellow off-price retailer TJX (parent company of T.J. Maxx and Marshalls), was close behind with sales growing by five percent, up to $9.8 billion.

The off-price trend is popular enough that major retailers like Macy’s are taking note, creating their own discount concept, Backstage, in certain locations. This strategy is facilitating more sales, but smart retailers should still have a secondary solution in place to further offset financial loss associated with excess inventory. Here’s why:

What Happens if You Still Can’t Sell Your Off-Price Inventory?

Even with an in-store off-price retail brand, retailers aren’t likely to sell all of their products. Excess inventory is unavoidable no matter how popular your brand is. What’s more, by selling to an off-price retailer, your recovery on the merchandise is most likely low. With a B2B marketplace solution like the one B-Stock offers, you can bring fresh life to your leftover inventory, selling it to a market of vetted business buyers looking to stock their own stores.

Retailers Can Diversify Revenue

Considering the current state of the retail market, it’s more important than ever to be proactive in establishing additional revenue streams. Your brand may be doing well with an off-price retail extension, but working with B-Stock helps create another secondary channel for your business. By selling returned, excess, or other liquidation inventory through our online auctions, you won’t have to be at the mercy of ever-changing industry trends.

You’ll Diversify Your Customer Base, Too

Consumer buying habits are always in flux. Expanding your customer base in B2B is easy with B-Stock, thanks to our vast network of business buyers from around the world. With our online auction platform, you can sell directly to this diverse audience, generating competition and pushing up prices for your inventory—which helps maximize recovery, velocity, and efficiency.   

Products Get a Second Life

How you liquidate matters. Not only is it financially sound to create a secondary online marketplace, but it’s also environmentally savvy. Our B2B sales channel offers retailers a sustainable alternative. Working with B-Stock to sell excess products to interested business buyers promotes a second life for items and a more socially responsible disposition channel than landfilling.

B-Stock operates the world’s largest network of B2B marketplaces for returned and excess apparel, shoes, and accessories. Each year, more than 20 million units of apparel are sold across our marketplaces from buyers across more than 100 countries. 

For more information on how we can create a B2B sales channel for your returned, excess, or other liquidation inventory, please get in touch with us! 

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