Retailers Building Margin with Off-Price Goods
Traditionally, mainstream apparel and accessories retailers have used off-price goods as promotions to entice customers into their stores and ultimately toward their full-price merchandise. While off-price goods are great to use in sales events, savvy retailers are finding new opportunities with off-price goods by cycling them into their regular inventory.
At the recent
Off-Price Specialist Show [create link] in Las Vegas, one of the major exhibitors at the show said, “Whereas closeouts used to be used as loss leaders in stores, retailers are now using them for margin building. They’re not necessarily looking for the sale item; they want to make money.”
Retailers shopping the Show agree. One Florida retailer shopping for medical care uniforms said, “A good 60% of the merchandise we carry is off price. Off price is becoming more and more important to us.”
A Washington State retailer said, “At one time, the theory behind off price was finding the sale item—bargain basement goods. Now, with the quality of the merchandise you find, you can retail it and sustain a higher margin.”
The great thing about off price is that it has value in every economy—from weak to strong. American consumers expect high quality goods at low prices, and retailers are forced to scramble to fill those needs. While the market is tough and competition fierce, the Off-Price Specialist Show [create link] provides retailers, both large and small, with sourcing opportunities for apparel, accessories and footwear to meet their customers’ expectations.
Attendance, particularly among new buyers, was up at the February Off-Price Show [create link] and order writing was brisk, further proof that retailers are turning to the Off-Price Show to find great bargains on quality apparel.
