Home décor closeouts have always sold well, but they really took of running when the pandemic started. Buyers for closeouts were also out in full force and they were looking for vendors who were looking to sell extra inventory of all kinds of products including sporting goods, housewares, toys, linens, crafts, and home accents. Because so many people were at home, they were refurnishing and redecorating like mad, and buying pretty much anything they could get their hands on.
There are 3 major reasons home décor became so popular and we are going to review them here. Buyers for excess stock took full advantage of these opportunities to supply their customers with closeouts and deals on picture frames, wall décor, vases, cookware, sporting goods and so much more. It also became a good opportunity for companies to sell slow moving inventory and closeouts that had been sitting in the warehouse.
1. We were stuck at home. Let’s face it; everyone was stuck at home with nothing to do. So if we had to live and work in the same space, why not at least make it more comfortable? People started replacing things and this meant if they were getting rid of something old, they had to replace it with something new. This became the catalyst for companies to sell extra inventory that was sitting in the warehouse, and get rid of some old stock or sell extra inventory or slow moving inventory that otherwise may not have sold. And consumers were happy to spend for it.
2. Stimulus money. The Government was basically handing out free money and consumers had nowhere else to spend it. They couldn’t go out to eat, they weren’t traveling, and almost everything else was closed. So what did they do? They shopped online and wholesalers and closeout companies were forced to ramp up buying in order to meet the demand. Buyers for excess stock and buyers for closeouts were especially busy during this time because there was a need to get product in the hands of retailers to support all the buying consumers were doing.
3. Interest rates. Who would have thought new home sales would set records in the midst of a pandemic? Although this was mostly due to opportunities from low interest rates, there was also a shift out of big cities into the suburbs. In both cases retail sales benefited and much like the “butterfly affect”, one thing can have a seemingly unrelated affect on another. Moving from one home to another, or from an apartment to a new home leads to a need to furnish or re-furnish everything. Again, this gave wholesalers an opportunity to ship whatever they had, and was a great way to sell slow moving inventory that was not so appealing pre-pandemic. Buyers for excess stock were forced to find new sources of goods and expand their buying channels to fill the need. Buyers for closeouts had the same challenges and had to make changes to their buying patterns to adapt.
As the pandemic comes to an end, buyers for excess stock will still be busy buying closeouts and slow moving inventory from sellers who need to liquidate inventory. The buying frenzy will fade, but there will still be a need to liquidate inventory and buyers for closeouts will remain busy.