As the demand for traditional department stores falls, off-price retailers are seeing a surge in popularity. With inflation running at its peak, consumers are now making their preferences move on the path of off-price retailing, where the availability of quality products is always high. 

But as more consumers join the ranks of bargain hunters and deal chasers, fewer know where their favorite affordable home decor, clothes, shoes, and other items come from. The supply chains behind these stores have evolved in the last decades to meet rising demand and are likely to continue to change as e-commerce grows in popularity and consumers emerge from the pandemic. 

The Retail Off-pricing Strategy

Retailers who provide high-quality goods at low prices usually sell second-hand goods, off-the-season items, etc. are Off-Price Retailers.

As per GlobalData, “There has been some customer switching into the off-price channel as consumers react to inflation and better prices”. the off-price channel will likely face increasing competition from resale platforms that are still gaining momentum. Retail sales are expected to grow between 6% and 8% in 2022, as consumers spend more on services than goods and address inflation.

Inflation blamed for poor earnings reports

80% of consumers said that they are buying the same amount or more second-hand apparel items and 25% said they would consider buying even more apparel items second-hand if prices keep rising. 

With inflation sitting upon the throne, off-price retailing has become a choice for all, it is affordable, convenient, and quality assured,  making it an apt solution for inflation. The annual inflation rate remained close to a 40-year high with sustained price rises leaving many people unable to cover the cost of essentials, particularly in May. 

With inflation on a high-rise graph, Target reported a shocking 52% fall in profits for the first quarter of this year, while Walmart’s stock recorded its worst day in 35 years earlier this week. 

Not just Target and Walmart, the retail sector has been helped by stimulus checks and other forms of federal financial relief, boosting consumers’ spending power. 


Despite inflation, sales data are primarily consistent, and the economy is continuing to grow. The price index number rose 8.3% on the headline and 6.2% on the core in April, and Gross domestic product fell 1.4% on an annualized basis within the half-moon, but most economists expect growth to select up through the year.

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