Scrabbling to Liquidate "Hidden Inventory"
Summer 2025 has brought scorching temperatures and early back-to-school resets. In response, retailers across the country are accelerating the liquidation of seasonal merchandise. That’s where the Allen R. Klein Company, a national leader in closeouts and inventory solutions, steps in to help businesses minimize markdowns and protect margins. Timing and strategy have never been more important. Based on Allen R. Klein’s 40-plus years of experience in the industry, he knows historically that if summer goods sit past July, their value can drop by 30 to 50 percent in most channels. Klein is the President of Allen R. Klein Company, a firm specializing in closeouts and liquidation strategies for national retailers. “That’s when we jump in,” says Klein. “Helping clients move product before the markdown spiral begins is where we add the most value.” Retailers Are Running Out the Clock Retailers typically begin summer clearance markdowns in late July or early August. But this year, that schedule has shifted. According to CivicScience, nearly half of U.S. adults began back-to-school shopping by early July — much earlier than in previous years. One major reason is the evolution of the school calendar. Decades ago, most schools across the U.S. began classes after Labor Day. Today, it is standard for grades 1 through 12 to return by mid-August, with many districts starting as early as the second week of the month. This shift has shortened the summer retail window nationwide, leaving retailers with less time to sell through seasonal goods before demand fades. Smart Tactics the Allen R. Klein Company Recommends Bundle Products to Drive Value Bundling slow-moving items like beach towels with sunscreen or flip-flops with tote bags enhances perceived value and helps clear shelf space more efficiently. Research from Lightspeed Commerce shows bundling can increase both average transaction size and sell-through rate. “If you pair two underperformers into one compelling deal, it’s more likely to move and quickly,” says Klein. Price Deeply and Decisively In the liquidation market, sliding-scale markdowns rarely succeed. Buyers — especially those operating on tight margins and limited shelf space — look for steep, upfront value. Liquidators often require pricing at 70 to 80 percent off wholesale, depending on product dating and resale potential. “Buyers don’t have time to track multiple offers or wait for gradual discounts,” Klein explains. “You have one shot to catch their attention. Price is what gets them to pull the trigger.” Reallocate Inventory Regionally Retailers are increasingly using real-time sales data and weather trends to guide where clearance inventory should be sent. Reports from replenishment platforms like EasyReplenish show that redistributing products by region before mid-summer helps reduce markdown losses significantly. “One-size-fits-all clearance doesn’t work anymore,” Klein adds. “We help clients move the right inventory to the right region at the right time.” A Real-World Approach That Preserves Margin Retailers who act early are seeing stronger results. Allen R. Klein Company has worked with multiple national clients this summer to help them clear seasonal inventory efficiently. In some cases, the majority of product was moved within weeks of markdown launch. “When we start working with clients early in the season and apply smart bundling and pricing strategies, they’re able to preserve significantly more margin and avoid costly warehousing,” Klein says. While each case varies, Klein emphasizes that retailers who prepare in advance for seasonal transitions are better positioned to hit their next sales cycle clean and strong. The Clock Is Ticking Back-to-school shopping is already in high gear. The National Retail Federation projects spending in this category to top $86 billion this year, a 9 percent increase over 2024. That demand shortens the summer sell-through period even further. At the same time, warehouse space remains tight and freight costs continue to rise. Retailers are finding it more expensive to hold onto seasonal goods. Many are recognizing that liquidation is not just a fallback plan but an essential part of inventory strategy. What Sets Allen R. Klein Company Apart Liquidation is a fast-moving, often unpredictable business, and not all players operate on equal footing. What sets Allen R. Klein Company apart is more than just its scale — it’s trust. With over four decades in the industry, Allen R. Klein has built one of the most extensive and reliable buyer networks in the business, spanning national retailers, off-price chains, regional distributors, and international export channels. But it's not just about reach — it's about credibility. “In this business, your word is everything,” says Klein. “There are a lot of shady operators out there. But after 40 years of doing things the right way, buyers know they can trust us.” That trust translates into faster transactions, stronger deal flow, and long-term relationships that benefit both buyers and sellers. Clients don’t just move product — they protect their brand reputation while doing it. Allen R. Klein Company’s Summer Clearance Checklist Start markdowns while demand is still strong Bundle slower-moving SKUs to improve perceived value Use regional data to guide inventory reallocation Work with experienced liquidators to maximize recovery value Final Word “Liquidation for summer isn’t just cleanup,” says Klein. “It’s a strategic opportunity. Execute early, package smart, and time it right.” Retailers who take action now are protecting margins and clearing space for the next sales cycle. Those who delay may be left with deeper markdowns and more risk heading into August. Looking to move seasonal inventory or reduce overstock? Contact the Allen R. Klein Company today and learn how we help businesses across the country turn surplus into opportunity.