It has been a while since I've posted, and since the last time there has been a mini-explosion of new marketplaces making inventory available to small buyers. In particular, within the B-Stock Sourcing Network, we have seen a bunch of new launches.
Best Buy: Probably the biggest of the retailers launching new inventory liquidation marketplaces is Best Buy. According to a Reuters profile of Best Buy:
Best Buy Co., Inc., incorporated on October 20, 1966, is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its Websites or mobile applications. It has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home. The International segment consists of all operations in Canada and Mexico under the brand names, Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. As of December 31, 2016, the Company operated 1,200 large-format and 400 small-format stores throughout its Domestic and International segments. It has a global sourcing operation to design, develop, test and contract-manufacture its brand products.
The Company's Domestic and International segments have offerings in six categories, such as consumer electronics, computing and mobile phones, entertainment, appliances, services and other. Its consumer electronics category includes home theater, home automation, digital imaging, health and fitness, and portable audio. Its computing and mobile phones category consists of computing and peripherals; networking; tablets; mobile phones, which include related mobile network carrier commissions; wearables, which include smart watches, and e-readers. The entertainment category includes gaming hardware and software, movies, music, technology toys and other software. It offers appliances, such as refrigeration, dishwashers, ovens, laundry, coffee makers and blenders. It offers services, such as consultation, design, delivery, installation, set-up, protection plans, repair, technical support and educational classes. Its other category includes snacks, beverages and other sundry items. The Company's retail stores have procedures for inventory management, asset protection, transaction processing, customer relations, store administration, product sales and services, staff training and merchandise display that are standardized within each store brand.
Needless to say, there is a TON of inventory opportunity here. It appears that the marketplace is starting with major appliance liquidations but it would not surprise me if the selection expanded over time into other categories.
Pirch: Pirch is a niche retailer of high end appliances and other home products. The products available for liquidation look absolutely beautiful and include all varieties of high end appliances. If you are an appliance reseller, or want to be one, you have to check this site out (https://pirch.bstock.com). According to Wikipedia:
The company was founded in San Diego, CA in 2009 by a team of businessmen including Phil Roxworthy, James Fikes, and Tom Cavallo, under Rox Design DBA Fixtures Kitchen Bath Outdoor. The team shared the point of view that the appliance retail industry had a need for the re-invention of the complete in-store, shopping and delivery/installation experience, as there was "a void in the marketplace, left by industries that had remained virtually unchanged for decades.”
On February 26, 2013, Catterton Partners (a private equity firm based in Greenwich, Connecticut, known for its funding of companies such as Build-A-Bear, Pop-Chips, Baccarat, Outback Steakhouse and Restoration Hardware), announced its investment in Pirch as a minority shareholder. The transaction accelerated the growth of the retail concept as it began its aggressive expansion across the country.
Pirch has four stores in California, more than any other state, including San Diego, Rancho Mirage, Costa Mesa and the Glendale Galleria. The company's first store outside California, as well as the fifth store, opened in a part of a shuttered Bloomingdale's home store at Oakbrook Center in Oak Brook, Illinois, on March 8, 2014, and a sixth at the NorthPark Center in Dallas, Texas, in part of a former Barneys New York, opened on August 23, 2014. On December 13, 2014, a seventh store opened at the Lenox Marketplace in Atlanta, Georgia, as part of the company's plan to expand its luxury retail stores nationwide.
In March 2015, an eighth location was introduced at the Garden State Plaza in Paramus, New Jersey. A three-story and flagship location opened in the SoHo neighborhood of New York City, New York in May 2016 as the ninth store. In May 2017, a tenth store was opened in Austin, Texas at the DOMAIN Northside.
JC Penney: Of course, who doesn't know this iconic retailer. According to the inventory liquidation marketplace page:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every shopping experience is worth the customer’s time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, customers will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,00 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer.
JCPenney Liquidation Auctions is the official B2B marketplace for the liquidation division of J. C. Penney Corporation, Inc. JCPenney Liquidation Auctions will offer bulk quantities of first-quality/excess and customer returns including: domestics, furniture, rugs, hard goods, apparel, footwear, and much more. Auctions lots are between one pallet and a full truckload. These are the same quality products that are sold through jcpenney.com.
So far, we have seen a pretty wide variety of home products on the marketplace, including: furniture, window coverings, bedding, kitchen and bath products. There have been some amazing deals to be had and, given their size, I expect to see much more coming in the future.
Scosche: The newest marketplace just launched this week (week of August 1). According to the liquidation site "About Us":
Founded in 1980, SCOSCHE (pronounced skōsh) Industries is an award-winning innovator of consumer technology and car audio products - committed to delivering superior product quality and functionality, exceptional value and unmatched customer service. The designers and engineers at SCOSCHE develop products that reflect a rich heritage in audio and mobile technologies. SCOSCHE finds inspiration in the California lifestyle, culture, music and people. These influences can be seen in the accessories and products that are now in the homes, offices and vehicles of people in over 50 countries. With over 400 patents/trademarks and industry awards received, it is easy to see why SCOSCHE is consistently at the forefront of technology and innovation.
The Company produces quite a variety of consumer technology products. While we haven't seen the site live yet, as of the time of this writing, it is reasonable to imagine a wide array of inventory available for liquidation. From mobile and audio products and accessories to heart monitors for athletes, the company has some amazing products. We can't wait to see this marketplace go live.
It is a golden age for secondary market buyers of liquidation inventory. Retailers have a bigger need than ever to move returned, overstocked and other distressed inventory while consumers are more interested in a bargain then they have ever been. Buying directly from these major retailers is the best way for any entrepreneur to start building a business in the secondary market.