Liquidators and retailers deal with excess goods
Major retailers like Target and Walmart have seen large amounts of excess inventory — which could be a good thing for businesses helping to eliminate excess supply, The Wall Street Journal reported Monday (July 4).
Some companies, including Liquidity Services, Xcess Limited and others, are seeing a large amount of excess inventory of items such as kitchen appliances, televisions, outdoor furniture and clothing, which have been marked for disposal by large companies.
In many cases, companies collect pallets from ports or warehouses, with the goods in question never even reaching store floors. Instead, the liquidators sold the wares to small businesses or even individuals who resell things online.
The report notes that the onset of the pandemic, now more than two years ago, saw many retailers cancel orders from overseas suppliers, with shoppers mostly staying at home.
That changed when the economy finally opened up and supply chains slowed due to factory backlogs and shipping delays. In an effort to overcome these delays, many businesses have started ordering additional items, placing those orders further in advance to ensure they arrive on time.
However, customer preferences have changed and many items that were popular at the height of the pandemic – such as homewares and more casual clothing – are no longer what customers are looking for. Instead, customers bought more expensive, dressier clothes and increased spending on travel and entertainment, although inflation is again changing spending patterns.
PYMNTS wrote that inflation has hit the United States, and recent Consumer Price Index data shows prices for food eaten at home have risen just over 10% from a year to year.
Read more: Inflation is the unwanted party killer this 4th of July
The report notes that money spent over the 4th of July weekend is “borrowed from the future”, with statistics from the American Farm Bureau Federation indicating that the total cost of a barbecue for 10 people is up by 17 % compared to last year.