Buying Closeouts from Going Out of Business

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There are many stores have closed in 2017 and new ones have been closing in 2018. Toys R Us has announced they are closing all of their stores. They are joining the ranks of Kmart and Sears. 
                                                    


According to Clark Howard -    https://clark.com/shopping-retail/major-retailers-closing-2018/

Abercrombie & Fitch – 60 stores
Foot Locker – 110 stores

Best Buy cell phone stores – 250 stores

Check out his website, these are only a few of the stores listed on the website. 

 If you intend to sell on Amazon or eBay or other sites, you want a decent profit and keep income circulating for more inventory.  Before buying, watch the pricing and how much you are willing to pay for the product. There are liquidators that operate the sales and will mark product up sometimes 60 %, then you will see the sales signs, such as 10% or 20% off. Although these businesses are closing, they still have bills and they have to move the inventory. These liquidation companies use urgency as a marketing tactics to get you to buy impulsively.  

                            

  According to ABC News article in 2008, http://abcnews.go.com/GMA/story?id=6326174&page=1 states "liquidators rarely sell merchandise at a loss, even near the end of the sale." According to Stephen Baker, a retail analyst quoted in the ABC piece, going out of business sales are basically psychological games to get people inside the store and excited about spending money.

  It is important to realize that if the entire chain of stores are not going to close down, you will not find good deals. 

  According to an article on The Penny Hoarder -JAMIE CATTANACH wrote on Feb 15, 2017 https://www.thepennyhoarder.com/deals/pro-bargain-hunter-retail-arbitrage/ about a couple that became bona fide bargain hunters that sell on eBay share, "she rarely touches anything on a sales rack that’s less than 90% off its original price; Cupler is “comfortable with 75%.” Another great place to get clearance, especially after holidays are drug stores. Smaller pharmacies have to clear their product.

  For the retail stores that are closing, keep in mind that the big ticket sales more likely will move to other stores and you will have better luck browsing the sale and clearance racks. 

  Founder Dave Clark Jr. of Clarky's Closeouts established in 2009, explains how he buys his closeout deals. "When a store closes I go in and bid against other buyers on the remaining inventory. Unlike the other buyers who will pay more because they resell it for retail, I try to buy it as cheap as possible so when I sell it I can average at least 60% or higher off of retail and sell it to you below wholesale. My goal is to save you as much money as possible as long as I can put a few dollars in my pocket to pay my bills and buy more inventory. All retail prices listed on this site are from your local home improvement stores or the manufacturer site. Due to many people's disbelief of the outrageous retail pricing you are welcome to double check my numbers and help keep me honest, actually I encourage it". 

  If you are buying from closeouts, make sure you have a strategy, compare prices on your phone, Ask for a better deal if you buy in bulk. 

        Keep in mind, with that much product flooding the market place at once,beginner sellers will want their product to move quickly and when it does not, they panic and lower their price. This will cause a race to the bottom where no one will profit. Because of this reason, you may be temped to go deep on an item.However, I would buy more of a variety than go deep on any single item. One way you could get around this, is by creating bundles. 


                              Have A Great Day!