How To Go Bargain Hunting At Overstocked Retailers This Summer
Too Much Stuff
Americans have been switching up their spending habits. While demand for goods and products soared during the pandemic, service-related spending is now increasing. That means dollars spent on things like furniture and clothing are going toward concerts, sporting events, and vacations.
Retailers like Walmart (WMT), Target (TGT), and Macy’s (M) are looking for ways to reclaim shoppers’ attention. As a result many are offering discounts. What’s more, many of these retailers are receiving delayed shipments tied to last summer’s demand due to supply chain snags. Analysts say that means discounts could rival some of the steepest ever offered.
Browsing Furniture in Your Sweats
Experts who work in warehousing and supply chain logistics have thoughts on the categories shoppers should focus on this summer. Chirag Modi of Blue Yonder suggests ecommerce companies who sell furniture are set to cut prices. At-home wear like sweatpants are also likely to be on sale due to oversupply.
You may also be in luck while shopping for technology. There are signs the chip shortage is easing, so TVs and laptops could be marked down. Sales may last beyond the back-to-school season.
Luxury goods are unlikely to be discounted, as demand remains high. Discount retailers like TJ Maxx (TJX) thrive in times of over supply and are also unlikely to offer major price breaks.
You don’t have to look far in some stores to find discounts. Target already announced plans to offer big sales. Walmart, which has more robust warehouse capacity, may not follow suit.
July 4th weekend could be a kickoff point for many sales. Most clothing stores will offer discounts due to the seasonal nature of their business. Otherwise, analysts suggest “thinking big.” Couches and patio furniture take up a lot of space at warehouses and companies don’t want to keep them in stock for long. If you play your cards right, the retail sector’s oversupply could be your home’s treasure.
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