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Hey Big Spender…

How off-price shopping is beneficial during back-to-school season:

Another school year is coming sooner than we think, and you know what that means… SHOPPING! In some cases, back-to-school shopping equals heavy spending which equals worried customers. However, if you take the off-price route, shopping can actually be manageable. Plus, it’s not only beneficial for the direct consumer, but also for the brands and retailers selling the merchandise as well. Here’s why:


First off, who are they?

Brands are companies that create merchandise to sell directly to both their consumers and to other retailers. Think Theory, Vince, Forever 21, etc.

How does off-price help them “win”?

Off-price allows brands to get rid of products that they can’t currently sell at full-price. This happens because there is a high demand from off-price retailers for these discounted products (think back to supply & demand). Recently, this demand has grown even larger as off-price shopping has gained in popularity. Lucky for brands, this helps them clear out inventory that would otherwise be left unsold and provide no return on investment.

Off-Price Retailers:

Who are they?

Off-price retailers are companies that buy merchandise from other brands to sell to their direct consumers.

How does off-price help them “win”?

Off-price retailers can buy the specific merchandise they need to satisfy the wants of their direct consumers. For the back-to-school season, retailers buy merchandise they know will be purchased in abundance during this time of year (children’s clothes, shoes, backpacks, etc). Because they know the demand is there, off-price retailers can sell the merchandise at a competitive and afforable price while still making a margin from the price at which they purchased the goods.

Direct Consumers:

Who are they?

People like you, who purchase merchandise for their own use. (In many cases, these are the moms and dads during the back-to-school shopping season.)

How does off-price help them “win”?

During the back-to-school shopping weeks, stores overstock themselves with a wide assortment of merchandise. This means the price-conscious consumers have to limit themselves to the products on the sale rack. However, in off-price stores, these consumers can shop the entire store filled with a wider selection of more in-season merchandise.

The situation is getting even better according to our CEO Ronen Lazar who predicts: “As more leading fashion brands begin to implement advanced technology solutions that allow them to manage their inventory in real-time and deliver curated product selections to retailers more efficiently, consumers can expect to find increased levels of in-season goods at off-price retailers, greatly improving their back-to-school shopping experience.”


Off-price is a win-win. Brands sell their inventory to retailers, who then sell it to consumers looking for those products. Customers are happy, retailers make money, and brands can clear out their inventory (and hopefully make a profit!)

*If any of these terms are unfamiliar to you, check out our Retail 101 Blog: