As mountains of apparel stock has piled up stores, distribution centers, warehouses and even shipping containers due to the COVID-19 lockdowns, retailers across the world are adopting innovative ways to get rid of it. Apparel chains including British high-street retailer Next and German sportswear brand Adidas have stashed away unsold basics, aiming to offer them next year instead. These retailers hope that easing lockdown measures will see shoppers return to stores, eager to unleash pent-up demand.
Many stores are likely to pursue a combination of holding sales as well as selling stock to off-price retailers. The mix will depend on consumer appetite, how much merchandise stores have to shift and how fast they must free up space for new collections. Some retailers are also likely to move their merchandise to online re-sale marketplaces that take a commission on sales, although that option is largely only open for high-end brands.
California-based luxury re-sale marketplace Tradesy opened a new business unit in April to deal with the jump in brands looking to sell stock they were stuck with after department stores canceled wholesale orders.
Some of the companies are also plotting a quick profit using re-sale websites. For instance, events company Luxury Experience & Co, plans to snap up merchandise at a discount, to then resell it at a higher price online at a site such as California-based Poshmark, which also makes money by taking a commission on sales.