As we dive into the market to see the trends of COVID-19 and the expected aftermath, there’s a wave of cancellations stemming from orders that were made months ago but will never sell. And according to Credit Suisse analyst Michael Binetti, this “will create the greatest buying environment of off-price in a decade.” With the surplus looming, different brands are expecting to re-engage with the off-price market in the second half of 2020 so they can clear out excess inventory. What’s more, the surplus could linger into 2021.

And, similarly to the last recession, consumer habits could pivot to needing, wanting and expecting lower prices (even as the economy improves). This will provide a huge opportunity for off-price due to its abundant apparel selection and affordability. But can off-price retailers handle all the volume? Some experts believe not. 

With the unprecedented volume of inventory that is likely to come, off-price retailers may have space, logistics, and financial challenges when it comes to accepting, moving, and purchasing the product. Every day that merchandise stands still, it ages, and as brands rush to get rid of excess inventory as quickly as possible, the demand may not scale evenly with the discounts. Not to mention that in a post-COVID-19 era, consumers may still not be comfortable going into potentially crowded stores.

So, how can brands prepare for what’s coming and ensure their surplus doesn’t end up in a landfill? The diversification of outlets is probably one of the best things to do. While off-price retailers may be able to absorb and sell some of the excess, tapping into the secondary market is another way for retailers to offset loss and protect their brand.

An online B2B sales channel – like the one provided by B-Stock – allows for  another avenue through which retailers can offset loss. With this type of solution, retailers and brands can sell their excess inventory to thousands of business buyers around the world through a private, online auction marketplace scaled to fit their needs. Nine out of the top 10 U.S. retailers work with B-Stock, using our platform to drive demand and achieve higher pricing as well as a faster sales cycle, all while maintaining brand integrity. 

If you want to learn how B-Stock can help you prepare for post-COVID-19 and help you harness the value of the secondary market, schedule a demo today. And join us this Thursday, April 23 for our webinar: COVID-19 Impact on the Secondary Market + Reverse Supply Chain to learn what trends B-Stock is seeing in the secondary market and reverse supply chain.

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The post Will Off-Price be Able to Handle all the Excess Inventory Post COVID-19? appeared first on B-Stock Solutions.

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