A well run retail business knows that every product stocked takes up room on the sales floor. If a product sits on a shelf day in and day out not only is the retailer loosing money on their inventory investment but money is lost because that stagnant product could be marked down to make room for a better or faster selling item(s). Sitting on merchandise for an extended period of time causes the slowdown of cash flow which is critical in any business.

Some major nationwide department stores have a specific shelf life for any product brought through their doors. For example product “X” will display in a particular display or rack on a particular aisle for a period of time. Once that time is up the item in marked down to a certain point and if the product is not sold through it is them deemed closeout or shelf pull merchandise where it will be boxed up and sold to a third part liquidation center sometimes at cost just to recover revenue to invest in the next product line.

This is where and when a smaller buyer can purchase a particular name brand item far below traditional wholesale. Typically items are manifested into pallets and sold for a fraction of original wholesale purchase. It is not uncommon to buy closeouts for 10-25% of original wholesale pricing!

Closeout Merchandise can be purchased from Large retails chains as well as wholesale distributors who might be closing out a particular line of merchandise. Closeout merchandise can be a fantastic business opportunity.