Are consumers craving more warehouse and anniversary sales events? – RetailWire
Sep 15, 2021
David’s Bridal is hosting its very first “Warehouse Sale for $ 99 and Under” over a three-day weekend in late September at the Greater Philadelphia Expo Center.
The sale promises more than 25,000 items, including $ 90 wedding dresses, $ 20 second-hand dresses and $ 5 accessories.
“We are delighted to host our very first warehouse sale,” said Jim Marcum, CEO, in a declaration. “As we continue to see weddings, girls’ nights and other celebrations come back on the calendar, we wanted to provide our customers with a fun pop-up experience to shop for the thousands of dresses, accessories and shoes that we have in store. our extensive inventory. ”
Warehouse sales traditionally offer overstocks and / or leftovers from previous seasons at savings in the range of 50-80% off retail prices.
Lululemon held its first online warehouse sale last July to reduce high inventory amid pandemic-related store closings, but did not repeat the event in 2021.
A few chains hold them regularly, including Ann Taylor Loft, J. Crew, Levi’s and Williams Sonoma, despite the price integrity risks. The legendary Barneys Warehouse Sale operated for 42 years in New York’s Chelsea neighborhood until 2014, after the fashion boutique expanded its discounts online and to outlet stores.
Warehouse sales are similar to anniversary sales held by many jewelers and furniture chains. REI has a popular anniversary sale and Best buy has held one every year since its fiftieth anniversary in 2016.
The most famous of its kind is that of Nordstrom, which is held from late July to early August. Wrote Squire recently, “The Nordstrom Anniversary Sale is loved by fans, first and foremost, because it’s kind of a reverse approach to making a difference. Instead of offering discounts on old off-season inventory, the Nordstrom team is hitting a very respectable percentage on a bunch of brand-new merchandise.
Nordstrom’s 2021 anniversary sale saw sales increase 1% from the 2019 event. Erik Nordstrom, CEO, said on the retailer second trimester call, “As always, our Anniversary Sale rewards and engages our loyal customers with a brand new product at reduced prices for a limited time. The event came at the right time to meet the growing demand from customers to refresh their wardrobes as they resume their activities outside the home.
DISCUSSION QUESTIONS: Are you a fan of big off-season sales events such as warehouse and anniversary sales? Should more retailers hold them?
“If these kinds of events are necessary for growth or just to maintain sales levels, it is not a healthy sign.”
“The fundamental challenge here is that retailers and brands continue to buy too much, over-assortment of products, and the excess is a huge problem.”
“… is a wedding warehouse sale really just a compromise of a future sale as part of a planned wedding plan? I think I see an overstock situation here.”