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Expanding your off-price horizons

Many retailers succumb to the temptation to sell off excess stock through big discounters at deeply reduced prices, but there are other options

The sale of excess stock is often seen by retailers and brands as a stressful process that offers very low margins. However, if done right, it can result in much higher margins, while also helping UK businesses to expand their international reach.

Fashion is more connected and accessible than it has ever been, and retailers and brands have customers all around the world. However, many are still underexposed in international markets. As a result, there is often heightened demand for their product in those territories, and this creates opportunities to clear excess stock at a higher margin. So, for example, demand is high for certain UK brands in the US, while high-end US and European labels fly off the shelves in Russia and Asia.

Nevertheless, many fashion retailers have yet to fully capitalise on these opportunities and explore ways to grow their international off-price offer. Instead, they stick to what they know: selling to large off-price retailers they have worked with before, at lower margins.

In this third chapter in our report on Optimising Excess Stock Management, sponsored by Inturn, we explore the alternatives, and how technology can support a more sophisticated approach.

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