Unsold Clothing is 2020’s Fashion Trend

Unsold Clothing is 2020’s Fashion Tren...
Dressbarn (one of my companies) is about to get a massive win!
And here’s why...
 
With the fashionistas of the world all sitting at home shooting TikToks and having Zoom meetings in sweats... 
With events to shop for or dates to go out on…
With empty aisles and empty stores...
 
Unsold inventory is piling up…
Warehouses are full…

Which means…
Discounts.

But let me explain… it’s even worse for them (and better for us) than you think.

Just like that chocolate you kept in the fridge for too long, inventory expires and therefore “gets worse,” especially collections that are season-sensitive.
 
And I hear you… you could theoretically argue that less-season-specific inventory “could” sell later... 
But nobody’s trying to look like they got stuck in 2019.
 
So more importantly…
What does a brand do with an outdated line?
Interesting question.

Easy answer is that they COULD discount their products. 
 
But here’s the catch: what happens after? 
Some brands are worried about discounting TOO much lest they uncover the wizard behind their curtain. 

“If you could sell this dress for $10 at profit...why are you charging us $100?”
 
In short, the high-end luxury brands are worried about discounts risking their “crème-de-la-crème” reputations.
 
So… the truth is there aren’t any great options for these retailers.
Which is where we come in. 

Since Dressbarn is one of the only buyers in the wholesale market…
Less competition equals better pricing. 

So while in-store retailers are frozen… we’re getting massive discounts.

...All the more reason to go full ecommerce. 

Alex Mehr Ph.D.
CEO, Schweitzer Alexander
Schweitzer Alexander
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