Why Big-Ticket Items Are Suddenly On Sale | SoFi

Why Big-Ticket Items Are Suddenly On Sale

In 2021 the term dominating discussions in the retail sector was “supply chain disruptions.” As container ships idled outside of major ports and workers called out sick with COVID-19, items like furniture, sporting goods, TVs, and clothing were hard to come by.

The supply shortage also eliminated retailers’ motivation to offer promotions and deals on certain items. Now, things have changed. Many retailers say they now have too much inventory, and plan to slash prices. This includes big-box retailers Target (TGT) and Walmart (WMT), who recently noted that rising labor and fuel costs are shrinking margins.

Changing Conditions

The pandemic played a role in the supply chain problems that caused items to be scarce last year, and it also seemed to impact spending habits. People stuck at home weren’t spending cash to commute or buy lunch at work, so they bought items to be used inside the home as well as new outfits – without balking at the price.

Now, many retailers say that demand has started to dry up, perhaps most significantly as a result of inflation. Executives explain they eagerly chased inventory when people were in the buying mode, hoping to avoid empty shelves. That process has carried over into the present, and surplus inventory has built up.

Deals To Be Had

Industry observers explain this glut has the potential to benefit shoppers, provided they know where to look. Discount clothiers like TJX (TJX) and Burlington make it part of their business model to purchase and resell excess inventory, so their prices are likely to be attractive.

Both Target and Best Buy (BBY) report increased promotions on things like computers and televisions. Urban Outfitters (URBN) says its promotions will be increased through the end of 2022. Inflation is leaving Americans worried about empty wallets, but the shelves are fully stocked, and that means discounts.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content. Communication of SoFi Wealth LLC an SEC Registered Investment Adviser SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners. SOSS22060203

Why Big-Ticket Items Are Suddenly On Sale | SoFi