Discount Retail Stores Thrive on Excess Stock

  • Added:
    Jul 07, 2014
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Discount Retail Stores Thrive on Excess Stock Photo by Colin Armstrong

Where do you buy most of your clothing? If you prefer retail shopping rather than buying online, you have two basic options: the normal retail outlet and the discount retail store. You probably also know that you can buy cheap wholesale clothing at discount stores without sacrificing quality. Style, on the other hand, is another matter. Why? Because discount retail stores thrive on the excess stock of manufacturers and distributors. For giving your customers a chance to get stylish, latest and great pricing clothes, then it is must to go with the correct wholesaler to meet out with your exact demand in order to earn profit. 

Distributors that sell clothes wholesale to normal retailers are operating on a strategy designed to stay ahead of the game. In other words, they are selling summer fashions before winter is even concluded.

This gives retailers the opportunity to acquire their inventory by mid-to-late spring. Clothing manufacturers work exactly the same way. The fashion wholesale business is often working nine months to a year ahead of the seasonal cycle in order to accommodate for the time necessary to work through all of the distribution channels. This strategy is the key to how discount retail stores make their money.

Disposing of Excess Stock

Manufacturers have no way to accurately project the number of pieces they will need to satisfy the demand of a future season. So what do they do? They err on the side of caution. In other words, they estimate what they might need and then add a little extra to cover all contingencies. It is better to have too much stock than not enough.

As the manufacturer nears the end of a seasonal cycle, they have excess stock they need to dispose of. They will sell it, at reduced prices, to a distributor specialising in cheap wholesale clothing. The distributor then turns around and sells the products to the discount retailer who purchases them in entire lots. The cheaper prices all the way down the line allow the discount retailer to also sell rather cheaply.

There is only one catch to the discounted model: the styles offered by discount retailers are often already in the past by the time products hits store shelves. Nevertheless, for the consumer who is not concerned about always having the latest styles, this is a non-issue. They still get high quality clothing at great prices.

UK Fashion Wholesale is a web-based business specialising in selling clothes wholesale to both retailers and individual customers. They know that in the world of fashion, wholesale pricing is possible without sacrificing style and quality.

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