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.