The U.S. economy is showing signs of bouncing back from the pandemic recession with gusto. Gross domestic product climbed by 5.7% last year — the highest annual growth rate in more than three decades. There are a few reasons for strong growth including more online retail sales, closeout websites and continued consumer spending and confidence. Liquidation buyers tat buy overstock inventory have been busy because businesses have an easier time disposing of old inventory and prefer to liquidate inventory when times are good. During downturns there are businesses that cannot survive and are forced to close warehouses and shut down 3PL warehouses. In these situations liquidation buyers may also be active with name brand closeouts and excess inventory purchases.
The last time the GDP grew at about this rate, President Ronald Reagan was in office. GDP growth in the last quarter of 2021 was 6.9%. “This is a rip-roaring economy,” said Laura Veldkamp, an economics professor at Columbia Business School. She pointed out that GDP includes the cost of goods, so some of that rise is because of inflation. “But not all of it, even when you take out the effect of rising prices, this still looks like a really rapid rate of economic growth,” Veldkamp said. Companies that liquidate inventory and buy overstock merchandise have been limited by the growing number of container ships stuck out at sea. There are still a massive number of overseas containers that have not been unloaded. Much of this excess inventory will arrive long after it was needed to fill holiday orders, and it will find its way to closeout brokers, closeout websites and liquidation buyers
Growth last year was fueled by massive fiscal stimulus as well as very low interest rates. Consumers were buying closeouts like there was no tomorrow as they exhibited unprecedented demand to buy overstock and liquidate inventory more than anytime in the past 3 decades. The momentum, however, appears to have faded by December amid an onslaught of COVID-19 infections, fueled by the Omicron variant, which contributed to undercutting spending as well as disrupting activity at factories and services businesses. Now that it seems Omicron is beginning to fade, consumers will be out and about driving sales again. Any slow moving inventory or dead inventory in the 3PL warehouse will soon be brought back to live. liquidation buyers, closeout buyers and closeout websites will all benefit.
The Commerce Department's advance fourth-quarter gross domestic product report on Thursday would support the Federal Reserve's pivot toward raising interest rates in March, and diminish prospects of more spending by President Joe Biden's government. Fed Chair Jerome Powell told reporters after a two-day policy meeting that "the economy no longer needs sustained high levels of monetary policy support," and that "it will soon be appropriate to raise" rates
Higher interest rates generally have a negative impact on growth, but this time with consumer savings at an all time high, and consumer demand for closeouts, excess inventory, business liquidations, product liquidations and even returns, we may be in for more growth. Closeout companies may do better than other industries in hard times, but the truth is “high tides raise all ships”. Wholesale surplus buyers and closeout liquidation companies will do well if there is a downturn in the economy, but they do better when everyone is doing well.
Liquidation buyers and closeout specialists will swoop in to buy up inventory when it has been reduced to a drastically low price just to get rid of it. In past years, Merchandise USA always took advantage of closeout buying opportunities when importers or wholesalers needed to clean the warehouse and get rid of old inventory. Liquidation stock has little value to it’s original owner, but it may have value to closeout buyers and wholesale liquidation companies who know where to place it. There is a large network of closeout brokers and inventory buyers that understand the market and how to sell these things. This is a specialty and overstock liquidation companies have spent many years perfecting their skills. Liquidation buyers have often been in business for many generations and they know how to dispose of dead stock for a profit.
The liquidation of a company may be the end of one business, but it provides an opportunity for another. Closeout buyers and merchandise liquidators specialize in getting rid of old inventory to customers who can make money by having a liquidation sale or wholesale closeout promotion. Companies that buy excess inventory may even sell it from the same warehouse they bought it, just to get rid of the inventory, make a small markup, and move it along. Merchandise USA has its own large warehouse filled with liquidation inventory and obsolete merchandise.
We have been buying closeouts for more than 37 years and specialize in buying hardware, lawn and garden, toys, sporting goods, picture frames, home decor, etc. We buy closeout merchandise for sale from importers and distributors around the glove. Merchandise USA specializes in business liquidations of all closeouts in all categories