Could this work for specialty action sport retailers? Many retailers are going to be stuck with unwanted inventory at the end of the year and with MAP pricing and other regulations, it is hard to dump that product even on sale. Traditionally, retailers look to secondary channels such as closeout sellers, liquidators and discounters to unclog their inventory pipeline but what about looking overseas where retailers aren’t under contractual pricing obligations? The cost of these overseas deals tends to be higher for retailers, but what constitutes higher when the alternative is to sit on unwanted merchandise? If it’s a purely cash deal, then a U.S. liquidator would typically pay a wholesale price of 25 cents to the $1 for overstocked goods. But if the goods are being purchased by an foreign liquidator, then retailers often have to pay the shipping costs. However, at this point, industry experts said most merchants will incur these additional costs instead of sitting on leftovers especially when many products become obsolete after a year. Retailers also need the cash by year-end because they have to pay their suppliers and creditors for next season’s merchandise.
PROTECTING RETAILERS AND A LIFESTYLE
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