When times are hard for most retailers, off-pricers usually thrive. This notion rings especially true now as supply chain disruptions led a lot of holiday inventory to arrive late — merchandise that is now up for grabs for off-pricers.
“That inherent flexibility of being able to vary what you buy based on what’s available is what helps them and these types of disruptions historically,” David Brown, a managing director and leader of Alvarez & Marsal’s Consumer Retail Group, said.
Brown said off-pricers have the advantage of not being locked into a specific assortment. Gathering together various pallet of goods allow off-pricers to offer a “treasure hunt” experience to their customers. In the apparel category, Brown said off-pricers are in a better position than their competitors due to their value-based offering, especially as consumers look into stretching their budgets over the next few months due to rising inflation.