Will the Future of Retail Be… L
The COVID-19 crisis has affected the fashion industry in several ways. From quick e-commerce shifts to a focus on sustainability and ethical practices, a lot of the changes have been quite positive. Amidst these shifts, however, boarded up storefronts have turned into landfill-like scenarios for many brick and mortar stores. The cost of disposing wasted capital is a deep hit amidst an economic downturn, and brands will need to get creative. Enter liquidation sales.
A mark of a businesses’ inevitable bankruptcy, liquidation sales are historically the end-all-be-all. For some, it may be true. JCPenney, Lord + Taylor, and New York & Company have both begun deep liquidation sales amidst filing for bankruptcy. Even with a number of bankruptcies likely looming though, these liquidation sales will likely start to pop-up. The inventory-to-sales ratio is unlike anything the industry has seen, with clothing sales falling 89% in April in the U.S. and 50% in Britain.
Some retailers are using warehouse spaces, some are selling to Marshalls/TJMaxx, and some may have to just move to sales. Keep an eye out for these deep cuts of expiring inventory, notably an upcoming ‘secret’ sale happening from August 11-15. ‘The Biggest
Online Flash Sale Ever,’ claims to be fashion’s “best kept secret” at the moment. Quietly, 35+ designers and high end brands like Theory, Rag & Bone, Alice & Olivia, Mansur Gavriel, and many more, have teamed up to launch an up-to-80% off mega sale online. The sale has a charitable element, with donations available, and the range of brands is sure to spark interest.
Personally, I’ll be paying great attention to off-price retailers who buy deadstock or unsold merchandise during this time. Brands like Overstock, TJMaxx, Ross stores, Nordstrom Rack - keep an eye out for these guys. Not only will their stock likely rise as they gain valuable inventory, but attention will be on them as they advertise more coveted items. Will you still be willing to buy last season’s duds?
By Adi Shoham