In the month since apparel retailers and department stores were forced to shutter their doors, it seems as though fashion—and time—have stopped moving. Between stay-at-home orders and the movement of only essential goods, the fashion industry is on the brink of missing several key seasons. Coupled with the cancellation of spring break, proms, and graduations, department stores have seen their stock stand still, waiting for the COVID-19 pandemic to pass.
So, what are apparel retailers focusing on now to help mitigate the loss that will be left behind in a dust of coronavirus? According to the experts at NuOrder, inventory reduction. Following are some of the strategies that retailers are employing to reduce inventory levels.
Taking into consideration that much of the apparel that won’t be sold this season was ordered months ago, some retailers are cancelling orders. In addition, the current overflow of inventory that hasn’t been sold presents a space limitation, making it difficult to bring new inventory in.
Leveraging Off-Price Retailers
Experts have agreed brands will look to off-price retailers—such as TJMaxx and Nordstrom Rack, to name a few—to offload some of their excess inventory. But as we’ve covered before, off-price retailers may not be able to handle all of the excess.
As retailers and brands explore the different avenues through which they can offset loss, it’s important to remember that there are more ways in which they can offset loss and recapture value for overstock. That’s where B-Stock can help. Our B2B marketplace platform allows for access to thousands of vetted buyers (which generate more demand), a consistent listing cadence, and a private, customized setting in which the seller can place restrictions on buyers—which protects the brand.
B-Stock’s auction marketplaces are customized and scaled based on each retailer’s needs and goals. That’s why nine out of the top 10 U.S. retailers are leveraging our platform to drive demand and achieve higher pricing, as well as a faster sales cycle—all while maintaining brand integrity.
If you’re ready to harness the value of the secondary market and give your returns and excess inventory a second life by selling to a new sector of buyers, schedule a demo today.