Is Off-Price the Redemption of Retail?

With the pandemic still staying strong, it is no lie that our economy is going to take some time to recover. People are being more aware of spendings than ever. The retail industry has been taking a serious blow and is still filled with a million uncertainties. People are looking for a better deal now more than ever. It got me thinking, is off-price the redemption of retail?

Off-price is commonly assumed to be low price, low quality, however, it is actually defined as low price, high quality. What makes retailers off-priced are things as simple as overstocked inventory from full-priced stores or inventory 1-2 seasons ago. For years, off-price is viewed as "lesser than" just because of the price. These people who shop off-price are not poor, they are provident. And with the widespread inventory cancellation of inventory due to COVID-19, it is rumored that buyers for companies such as TJX and Ross Inc. will enter one of the greatest buying environments of all time, getting some of the best deals in history, and thus reducing the ticket prices of items sold in-store. Merchandise grows older each day that passes by. These vendors will want to get rid of and move through as much old inventory as possible and off-price will be their only answers due to the image full-price, department stores must fight to maintain. As states are slowly opening back up again and the unfortunate result of increased unemployment, people are going to be forced to go bargain hunting and will be especially attracted to off-price for their affordability and general variety.

This past summer, I was a buying intern for the Men's Designer Suit department in the Saks OFF Fifth. Working in one of the most well known luxury department stores was a learning experience I will never forget and seeing the off-priced side of it all was even more impactful. I learned that off-price is able to a little bit more flexibility behind their buys because they are negotiating for something that is in a little less demand. Whether that be original buying cost, shipping details, and size range. These are all variables that will be taken into account and will be taken advantage of in future buys.

Although there is an uncertainty as to when stores will be fully up and running, the minute they do, I am sure that people will come flooding in because they finally have something to do and a reason to buy again. Retail will never be dead because people will always be buying something, however, the way they do such things are always bound to change. Off-price may be the way to fix all of the damage that has been experienced by the retail and fashion industry. The redemption of retail.

Stay UNIQUE,

Sara Anne