As the economy continues to re-open following the pandemic, consumer spending is on a tear. The rate of spending has increased dramatically with households that earn more than $120,000 per year accounting for nearly 40% of the spending. This is good news for closeout websites and companies that sell excess inventory. The middle to upper class still looks for bargains and deals, and will continue to reward closeout distributors and retailers that sell excess inventory.
Dollar Tree, Ross Stores, TJ Maxx and Big Lots are among the largest discount retail chains in the United States. These big box stores buy closeouts and overstock deals from importers and closeout distributors at deep discounts Suppliers that have to liquidate inventory often turn to these retailers, rather than closeout distributors, as a way to alleviate excess inventory without interfering with their regular distribution.
Closeout websites including Ebay, Amazon, NewEgg and Walmart.com will all benefit from this increased spending. Consumer buying habits have changed forever and a greater percentage of all retail sales will continue to be made online. Our hectic lifestyles and busy schedules leave us little choice when we compare spending hours getting in the car, fighting traffic and visiting stores vs spending minutes online. The discount business is here to stay because no matter what the income level, each class of consumer has its own level of discretionary income available to spend on closeout websites and other online platforms.
Closeout distributors and other companies that need to liquidate inventory and get rid of overstock know the secret sauce lies in how they price their merchandise and where they offer it for sale. The recovery is in full swing and the consumer is showing signs of unprecedented demand to buy closeouts. There are no boundaries as all categories of consumer goods are flying off the shelves and retailers can’t keep closeouts in stock. For suppliers wanting to sell excess inventory or get rid of dead stock, there has never been a better time to promote these goods at deep discounts and get them out of the warehouse once and for all.
There is no way to predict when the demand for overstock inventory and closeouts will end. But as long as the unemployment rate is low, interest rates remain under control, and closeout distributors continue finding deals on excess inventory, consumers will spend on closeouts and deals on discontinued inventory.