Could the ‘largest retail liquidation store’ change the discounting game?
Quicklotz Liquidations, which just announced plans to open the country’s “largest retail liquidation store,” is among a number of retailers mixing gamification and the treasure hunt experience to reinvent the liquidation process at brick and mortar retail.
Anchoring the Northeast Mall in Hurst, TX, the 140,000 square-foot store features a “bin shopping experience” offering more than 50,000 items daily at up to 90 percent off typical retail prices. The assortment consists of excess inventory from Walmart, Amazon.com, Nordstrom and others, including returns, shelf pulls, overstocks, closeouts, damaged merchandise and salvage.
The standout feature housed at the location, however, is ubiduwin — translating to “you bid you win” and described as “America’s fastest growing online auction.” Ubiduwin.com, which has more than 15,000 currently registered bidders, offers “fast, furious and fun” two-minute selling cycles with entry bids starting at $5.00. Winning bidders can pick up their items at the Hurst location or have them shipped anywhere in the U.S.
On the ubiduwin.com website, recent items available for bidding included a Coleman camping cot and air mattress with a retail value of $156 and a ProForm 50-lb. dumbbell with a retail value of $269. Quicklotz has six retail outlets overall.
The major trend in liquidation retailing is the daily descending price model.
Gimme A $5!, with 13 locations in the southeast, prices all items at $5 on Saturday and Sunday as locations are restocked. Prices are reduced to $3 on Monday, $2 on Tuesday, $1 on Wednesday and Thursday, and a quarter on Friday.
Crazy Cazboy’s, Krazy Binz, Good Deals, Dream Deals, Quarter 2 Five, BINge and Daily Dealz are some other banners making use of the daily price-drop concept.
Gimme A $5! says on its website that, beyond buying overstocks and returns in bulk, savings come from placing merchandise in bins to avoid the expense of organizing and stocking standard shelves. Setting one price daily eliminates the labor costs of pricing products individually.
The daily price-drop locations typically have lines outside on restocking days, with the deals promoted on social media.
Speaking to the Tennessean, Adam Harrington, a co-owner at Gimme A $5, said liquidators typically use sites like eBay to sell excess inventory, but items below $50 aren’t worth the time to photograph, pack and mail. He said, “They cycle the cheaper stuff over to us.”
- America’s Largest Retail Liquidation Store Opening Soon in DFW Market – Quicklotz Liquidations
- New store from massive discount chain lures Dallas bargain hunters – Culture Map Dallas
- Gimme A $5!
- Liquidation store digs up big business – Tennessean
- Dream Deals
- Is Crazy Cazboy’s pricing too crazy or just crazy enough? – RetailWire
- What Stores Do With $90 Billion in Merchandise Returns – The Wall Street Journal
DISCUSSION QUESTIONS: Is gamification, whether via flash auctions or the daily descending price model, uniquely suited to liquidation retailing, or can other types of retailers join in? Are liquidation stores becoming a better avenue to clear overstocks and returns versus online auctions, flea markets and other traditional reseller markets?