From Tariffs to Store Closures: How Liquidators Are Helping Retailers Stay Afloat in a Shifting Supply Chain
Inventory Pressures Intensify
The second quarter of 2025 is underway, and for retailers across the U.S., the pressure is only intensifying. Between newly imposed tariffs, freight delays, shifting consumer demand, and a surge in store closures, businesses are being forced to rethink how they manage — and move — inventory.
Two of the biggest stories making headlines: the final bankruptcy of Rite Aid, and the unexpected rebound of Big Lots, now under new ownership through Variety Wholesalers. While one chain is closing hundreds of stores, the other is reopening locations across 14 states. Both, however, are contributing to a growing theme: disruption in the supply chain is creating a new wave of opportunity in the liquidation and closeout industry.
“What we’re seeing in 2025 is a convergence of pressure points,” says Allen R. Klein, President of Allen R. Klein Company. “Tariffs, overstock, store closures — it all adds up to a surge in excess inventory. That’s when our phone rings.”
Inventory Chaos: A Tariff-Fueled Surge
New U.S. tariffs, including expanded duties on imported goods from China, are adding a fresh layer of uncertainty. Many companies responded by over-ordering inventory in advance of the tariff deadlines. Others are now saddled with goods that are too expensive to move profitably in traditional retail channels.
The result? Overstock. Everywhere.
“When tariffs shift suddenly, it throws forecasting out the window,” says Roger Bolduc, Vice President of Operations at Allen R. Klein Company. “We’ve spoken with suppliers who suddenly have tens of thousands of units they can’t move fast enough — or not at a price that makes sense. They need options.”
This trend is rippling through industries ranging from electronics to home goods to health and beauty — especially in categories where margins are already thin.
Rite Aid’s Exit: The Secondary Market Expands
As if trade policy volatility weren’t enough, the liquidation industry is also feeling the impact of Rite Aid’s final bankruptcy and widespread store closures. Once the third-largest pharmacy chain in the U.S., AP reports that Rite Aid intends to offload inventory, fixtures, and equipment as it exits hundreds of locations.
“Any time a national retailer closes that many stores at once, it creates a ripple effect,” Bolduc notes. “The supply chain is suddenly flushed with goods — and not just Rite Aid’s own inventory. Vendors that serviced those stores now need to clear products fast.”
The categories impacted are wide-ranging:
- Health and beauty aids
- Store fixtures
- Over-the-counter pharmacy items
- Private-label consumer packaged goods
Many of these items are now entering secondary markets — online sellers, export buyers, regional discounters — often through liquidation specialists who can manage the scale and complexity.
A Big Lots Revival and What It Signals
On the other side of the spectrum is Big Lots, which filed for bankruptcy in 2024 but is now being revived under Variety Wholesalers. More than 130 stores are reopening, giving the discount chain a second life — and a big appetite for inventory.
While this is positive news for the brand, it also adds fuel to an already complex market. These reopenings require rapid restocking, often with opportunistically sourced merchandise.
“When stores re-enter the market like this, they need volume — and fast,” says Bolduc. “That creates opportunities for liquidation firms like ours to help fill those shelves with reliable, cost-effective product.”
The new Big Lots is likely to favor deal-driven inventory — the kind that Allen R. Klein Company is built to deliver.
Warehouse Pressure Builds
All of this — tariffs, closures, reopenings — is compounding another critical issue: warehouse space is tightening fast.
From California to the Southeast, distribution centers are overflowing with product. Retailers are scrambling to clear out last season’s stock before the next wave of back-to-school or holiday shipments arrive. Some are choosing to liquidate even profitable goods simply because they can’t afford to hold onto them.
“We’ve had calls from clients who say, ‘I don’t even care if I make money — I just need the space,’” Bolduc shares. “It’s no longer just about inventory turns. It’s about physical footprint and logistics costs.”
Liquidation as a Strategic Solution
In this environment, liquidation isn’t a fallback — it’s a strategic release valve. Companies turn to experienced firms like Allen R. Klein Company to help them:
- Quickly evaluate and price surplus inventory
- Move product into appropriate secondary channels
- Protect brand value while avoiding storage and disposal costs
And while some assume liquidation only happens in distress, Bolduc is quick to point out that many clients are using it as a smart, recurring part of their inventory management strategy.
“Our most successful partners aren’t panicking,” he says. “They’re planning. They know there will be bumps — tariffs, closings, freight delays — and they keep us on speed dial for when they need to move.”
Looking Ahead: What’s Next?
With election-year uncertainty, continued volatility in global shipping, and retailers still adjusting to new consumer behaviors, Bolduc sees no signs of slowdown.
“We’re expecting a very active summer,” he says. “There’s more inventory in motion now than we’ve seen in years — and if you’re positioned right, it’s a chance to grow.”
Conclusion: Agility Wins in a Shifting Market
The challenges of 2025 — from tariff changes to the fall and rise of major retailers — are real. But so are the opportunities. For companies holding excess inventory, and for buyers looking to capitalize on strategic deals, the liquidation world is more relevant than ever.
With decades of experience and a deep network of relationships, Allen R. Klein Company continues to help businesses adapt, recover, and thrive in an unpredictable market.
Looking to move surplus inventory or source quality closeouts?
Contact us today to see how we can help you turn challenges into opportunity.
