Why purchase wholesale clothing from department stores’ closeouts? – The Benefits

why purchase wholesale clothing

Many people see the potential on making a business out of selling designer brands’ clothing items, at a retail location or online, but don’t know how to obtain them in bulk. What many people don’t realize is that it’s not simple to obtain items from certain brands, as explained on previous posts. There are different methods of obtaining wholesale designer clothing, but the most common and reliable method is through a verified wholesaler that offers overstock and closeouts from department stores.

There are different terms used when working with wholesale merchandise, but department stores’ overstock and closeout lots in general, refer to items that are left from department stores’ sales. These items were only displayed at a store, they were never sold, and are in new condition. Once these items are left from department store’s sales, they are separated into categories, and offered to wholesalers in large quantities.

Some department stores offer their closeout merchandise in broadly categorized lots of «men’s clothing»or «women’s clothing», while others separate their closeout items into more specific categories, and even offer manifests (item lists with the description of each item) for their lots. Because department stores only separate their merchandise into categories, they do not offer wholesalers the possibility of picking or choosing items of a certain style or from a specific brand. In other words, closeout lots from department stores will always contain an assortment of brands, styles, sizes, colors etc…

While some more specific offers are available from certain distributors, they are usually only sporadically available, which makes it hard to count on if you are looking for a steady supply for your business. Even though these closeout lots contain a variety of brands and clothing styles, they are constantly available, as they are acquired from department stores, which have sales every week, and must always have the latest fashion styles in their stores.

Purchasing closeout lots is one of the only methods of obtaining some designer brands, which are practically impossible to obtain otherwise. Many of the styles found in these lots are also unique, and cannot be found in discount or outlet stores, as they were made specifically for large department stores which are many times located in high end malls.

Though no one can ultimately guarantee a profit when working with department stores’ overstock and closeout lots, as it will always depend on the retailer’s selling strategy, many factors can collaborate to a profitable business. The designer brands found in these closeout lots, the unique styles, and the steady supply are only some things to consider. Taking into account that these items are offered at wholesale prices, good profit margins can be attained, as many times these lots are sold for a fraction of their retail value.

The proof that there is a profit to be made when working with department stores’ overstock and closeout lots are large discount stores like Marshall’s, TJ Maxx, and Ross. These companies are based on selling items from designer brands obtained in bulk from large retailers, and have been on a steady growth for more than a decade.

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