Storm Clouds Gather Over Global Economy. Closeouts And Liquidations Come Next.


overstock merchandise

The International Monetary Fund has warned of a disorderly repricing in markets, saying global financial stability risks have increased, raising the risks of contagion and spillovers of stress between markets. The fund said that colliding pressures from inflation, war-driven energy and food crises and higher interest rates were pushing the world to the brink of recession. High interest rates directly affect business productivity and sales. Closeout companies and closeout wholesalers that use bank funding to run their operations will be negatively affected by rising rates. Cutting its 2023 global growth forecasts further, the IMF said in its World Economic Outlook that countries representing a third of world output could be in recession next year. A recession is typically defined as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. It is during these times that wholesale liquidators buy excess merchandise from businesses that are shutting down and liquidating their entire inventory.

"The three largest economies, the United States, China and the euro area, will continue to stall," Pierre-Olivier Gourinchas, the IMF's chief economist, said in a statement. "In short, the worst is yet to come, and for many people, 2023 will feel like a recession. As the economy slows down, the pace of imports entering the U.S. Will sharply decline, and inventory levels in the country will increase as sales slow down. Closeout wholesalers that buy excess merchandise will be busier than in recent years, because they will be purchasing dead stock and overstock inventory that is no longer selling. Many of the 3PL warehouses that have been so busy in recent years may see slowing trends, and Amazon FBA sellers may accumulate too much inventory and be forced to shut down operations and close Amazon seller accounts. Companies have liquidation stock for sale when they can no longer sell enough inventory to cover expenses and they are forced to liquidate inventory to create cash flow. Liquidation companies enter the picture and can be helpful in distributing slow moving stock to closeout companies that specialize in discontinued stock.

As central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a global recession in 2023 and a string of financial crises in emerging market and developing economies that would do them lasting harm, according to a comprehensive new study by the World Bank. The most recent lasting major recession was in 2008, and during that time discount retail stores flourished, as distributors and importers were liquidating entire inventory positions for cash. If you are trying to get rid of excess inventory in your warehouse, consider a Google search using terms like closeouts, going out of business, overstock liquidators, companies that liquidate inventory, buyers for inventory, closeout brokers, what is the liquidation process and where to sell closeouts.

Consumers have extra money in their pockets and they are interested in looking for closeouts and finding deals on excess inventory of discontinued products. But as rates increase, consumer demand slows and closeout wholesalers and companies that buy excess merchandise become more active in the market. Unless supply disruptions and labor-market pressures subside, those interest-rate increases could leave the global core inflation rate (excluding energy) at about 5 percent in 2023—nearly double the five-year average before the pandemic, the study finds. To cut global inflation to a rate consistent with their targets, central banks may need to raise interest rates by an additional 2 percentage points, according to the report’s model. These moves put downward pressure on retail sales leading to an environment where businesses cannot handle the additional cost, sales decrease and closeouts begin to bleed into the retail landscape. Overstock merchandise becomes prevalent as soon as sales slow down and businesses begin liquidating entire inventory positions to stay afloat. If this were accompanied by financial-market stress, global GDP growth would slow to 0.5 percent in 2023—a 0.4 percent contraction in per–capita terms that would meet the technical definition of a global recession. During a Global recession shutting down warehouses becomes commonplace and companies going out of business liquidate entire inventories to generate cash and make room in the warehouse. Closeout companies and wholesale liquidators often do better in these circumstances, because they accumulate inventory to sell to closeout websites, closeout brokers and other companies that liquidate inventory.

“Global growth is slowing sharply, with further slowing likely as more countries fall into recession. My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies, said World Bank Group President David Malpass. To achieve low inflation rates, currency stability and faster growth, policymakers could shift their focus from reducing consumption to boosting production. Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.” Closeout businesses have been in existence for decades, really ever since the 1930's depression and they function as inventory liquidators selling excess inventory in an effort to empty crowded warehouses, while at the same time generating much needed cash. Wholesale closeouts are popular among cash strapped consumers in difficult times, because they offer higher value than regular imported goods at regular cost. Closeouts are often available at 40% to 75% off regular price, and include closeout pet products, discontinued housewares products, lawn and garden closeouts, candle closeouts, sporting goods closeouts and also overstock toy inventory.

The study highlights the unusually fraught circumstances under which central banks are fighting inflation today. Several historical indicators of global recessions are already flashing warnings. The global economy is now in its steepest slowdown following a post-recession recovery since 1970. Global consumer confidence has already suffered a much sharper decline than in the run-up to previous global recessions. When companies are stressed to these levels some key indicators of trouble are reducing warehouse space, shutting down warehouse operations completely, liquidating entire inventory and getting rid of merchandise that isn't selling. The world’s three largest economies—the United States, China, and the euro area—have been slowing sharply. Under the circumstances, even a moderate hit to the global economy over the next year could tip it into recession.

Arrayed against this baseline of sharply diminishing global growth are various overlapping and mutually reinforcing downside risks, including intensifying geopolitical tensions, rising financial instability, and continuing supply strains, again leading to an increased level of closeouts, situations where companies need to clear out warehouses and overstock liquidation opportunities. Three of these, which are discussed and quantified in the sub-sections below, may already be materializing. If these shocks materialize at the same time, they could lead to a much sharper global slowdown in 2022-23 than projected in the baseline.

Either product arrived too late, the company was bought out and has excess inventory, someone has closeout their business and needs to empty out the warehouse, or they simply have excess stock from previous seasons and years with goods no longer in their catalog. Merchandise USA buys closeouts of all consumer categories including closeout pet products, overstock housewares, closeout toys, closeouts of sporting goods, closeouts of lawn and garden products, closeouts from Amazon online sellers. It may be for any reason including closing down Amazon seller account, closing the business and wanting to sell inventory leftover, downsizing at the end of the month, or general overstock liquidation due to health or profits. Also we buy closeouts If the company is closing and liquidating out inventory. Merchandise USA buys closeouts of all consumer categories including closeout pet products, overstock housewares, closeout toys, closeouts of sporting goods, closeouts of lawn and garden products, closeouts from Amazon online sellers. It may be for any reason including closing down Amazon seller account, closing the business and wanting to sell inventory leftover, downsizing at the end of the month, or general overstock liquidation due to health or profits. Also we buy closeouts If the company is closing and liquidating out inventory.