Cover Magazine Features Overstock Avenue in Industry Leaders Outlook!

We know 2009 was a tough year for a lot of businesses, and we truly hope that the coming year brings much success to all of our valued customers!

Lisa Sperow, company founder and president, Overstock Avenue, Charlotte, NC, explained that 2009 was a great year for her company, and 2010 looks good as well. “We are in a big growth phase right now, and have seen a lot of businesses shift models. Basically, we have gained many customers who were not previously buying off-price. They have had to shift their models to survive this market. These companies will layer in off-price so that they can continue to offer quality brand name merchandise. But they need to be able to buy and sell it for a lower cost than they were used to.”

Sperow is quite aware of a positive turn in the economy, but her optimism for 2010 centers on what her company has done to position itself for the year ahead: “We are optimistic for our growth,” said the president, “because we are adding new product lines, we have added a new website, and new programs for our customers.” Sperow’s greatest concern is about her customers and their buying habits. Although buyers are weary of this recession like everyone else, she said that they need to begin buying earlier in the cycle. “Many customers wait to a more in-season point to buy, rather than stocking up at the beginning of the season. We will see merchandise tighter this year than it has been in the past, so we on the wholesale side will stock up now. We would encourage our retail customers to do the same. Get merchandise early.”

Sperow suggested that the key to success in retail is to continually add new product to the mix, and do not let old merchandise sit there by itself. Retailers must keep adding and layering new merchandise to excite their customers when they come into the store. “Each time the customer comes into your store, they must see new merchandise, rather than stale inventory,” Sperow advised. Overstock Avenue has rebranded itself completely. For the past seven years, it has been known as Madison Avenue Closeouts. Along with a new name, it is offering a new, extremely user-friendly website to help buyers find what they need. It now posts inventory that Overstock Avenue has in its warehouse, and inventories on hand, at its suppliers’ warehouses. This way, Overstock Avenue customers can shop multiple warehouses to get just what they need; a customer service that saves time.

A great new service of Overstock Avenue is to allow customers to visit its warehouse personally. Sperow explained, “We have launched a new program in our warehouse called our ‘Pick and Choose’ program, which gives people another option to buy. In the past, they could select product off of the website. Now, we are opening the warehouse for retailers to come in and pick and choose their own merchandise. This has been an extremely popular program.” There are more programs coming as 2010 progresses. “During the course of the year, we will add several new suppliers. We will not only be offering new categories, but will offer several more price points. In the past, we have offered higher end products. Now we will offer more budget friendly merchandise. We have always been strong on quality and we will continue to be. But what we will bring in are high quality products at a more budget friendly price.”

Read the full 2010 Business Leaders Outloook at Independent Retailer

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Booming Business in A Recession!

In a year when many companies are posting losses, Overstock Avenue has seen their business continue to grow. "Well, I will say that it has not been easy," says Sperow. "This economy is keeping us on our toes, and I think we're all working harder than ever. But we are growing and hearing a lot of success stories from customers, and that's very satisfying." Sperow cites the company's ability to adapt to change as a key to their success. "This industry is constantly changing," she says. "You can never get too comfortable and just assume that you can do things the same way you did last year. We're always tweaking and adapting, and doing what we should do to meet the needs of our customers."

The customers that Overstock Avenue works with are also changing. Katie Glodowski, sales manager, says the company has seen changes in their customer base, in response to the current economy. "We've gained a lot of customers in the past year who were actually not previously buying off-price," she says. "They have realized that despite the economy, their end consumers are still continuing to shop and purchase new clothing, but they're just more bargain conscious than ever. To continue to earn their business, retailers have to find ways to continue to bring in great merchandise, but at lower prices. The neat thing is that these new customers are so pleased with the quality and value of the clothing they're getting from us, they say they will continue to incorporate off-price offerings into their mix, even after the economy recovers," Glodowski says.

Changing with the Times

As retailers are being forced to reevaluate their product offerings, wholesalers need to be able to adjust their products and services to follow suit. The team at Overstock Avenue listens to customer concerns and is committed to fine tuning their operations to best suit the needs of their customers.

Betsy Breen, director of operations, notes several key areas in which Overstock Avenue is making enhancements. "One of our biggest short term goals is to diversify more in several different directions," she says. "We're working with new partners and getting ready to bring in some new product lines. In addition to adding new lines, we're also getting a little more vertical in each of the lines we already carry. We'll be providing more options at different price points, which will allow us to serve customers looking for price points at both ends of the spectrum, and in between."

Increased Customization

One thing that has worked to the advantage of wholesalers recently is an increase in the number of liquidation offerings. "Over the past two or three seasons or so, we have been able to take advantage of more opportunities than ever," says Sperow. She credits overbuying by department stores, as well as an increased need for some companies to liquidate products at a loss, in order to quickly generate capital. As a result, Overstock Avenue has been able to receive more inventory than ever before, and can often put together very customized lots for their customers. "It hasn't always been like this," admits Sperow. "We used to receive very limited quantities of certain categories, and a high degree of customization wasn't always possible. Now, since we have more product lines plus greater access to available inventory, we can work with customers more to put together shipments with the mix of products that best suits their needs." The company says that the degree to which they can customize shipments is always dependent on available inventory. Glodowski says that in addition to helping customers with immediate needs, she also keeps "wish lists" on file, and notifies buyers when items of interest are received or become available, from one of the many distribution centers they work with.

To read the full article, head over to Wholesale Central.

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