Closeout Retailers And Empty Shelves. Not A Good Combo.

Shoppers across the country are finding half-empty racks and shelves in many of their favorite retail stores. Clothing stores are out of popular sizes, and even more of them have much smaller selections than they used to. At many big box stores, portions of the floor are now closed off with dividers. Large National discounters like TJ Maxx and Ross that often sell excess inventory and closeouts are having a tough time keeping stores full. There is currently a shortage of shipping containers creating a huge disruption to the supply chain. Liquidation buyers for these big box retailers are turning to domestic closeout wholesalers for goods to help meet consumer demand. Today’s customer is eager to buy excess inventory, refurbished products and new goods as long as they feel it fits their needs.

It's not just discount stores struggling to keep closeouts on their shelves. Retail stores everywhere are coping with product shortages as we start getting into the all important holiday shopping season. Companies that have to sell overstock and sell excess merchandise are in good shape because there is unprecedented consumer demand for product. Liquidation buyers that buy excess inventory and surplus merchandise.

It's the result of pent up demand combined with supply chain breakdowns. Covid seems to have put into action a chain of events that lead to our current situation. What we are seeing is a disruption in the supply chain that happens sometimes when there is a limited capacity. But now with a labor shortage, raw materials price increases and shortage of shipping containers, and a shortage of truck drivers, it is just the perfect storm. It can be challenging to buy excess inventory and closeouts in this environment because there is not a huge supply on the market like there once was. But there will always be companies that need to liquidate and sell excess inventory. Likewise, there will always be a liquidation buyer ready and willing to invest money in a good deal.

With the all-important holiday season approaching, it is understandable how today’s supply chain and labor problems can be a source of anxiety. Many retailers rely on the 4th quarter for the majority of their sales and it is only in this 90 day period that they are able to turn a profit. Without enough inventory to sell, or without enough employees to handle the work load, there may be trouble brewing. For closeout sellers and liquidators of overstock like toys, housewares, home accessories, lawn and garden, etc, where they run low margin, high traffic operations, this may also be a problem.

Merchandise USA is a closeout buyer ready to buy discontinued, excess and overstock inventory. We have been surplus inventory buyers for more than 35 years.