Why Leaner Inventories Are Fueling More Liquidation Deals in 2026
A Surprising Side Effect of Inventory Discipline
After years of overstock and markdowns, many brands are entering 2026 with tighter inventory strategies. The goal? Run lean, cut holding costs, and respond quickly to changing consumer demand.
But this "smarter stocking" trend is having an unintended consequence: more liquidation deals, not fewer.
“We’re seeing an increase in clients offloading inventory earlier and more frequently,” says Allen R. Klein, President of the Allen R. Klein Company. “Manufacturers and importers are quicker to act when something isn’t moving. They can’t afford to wait and hope anymore.”
Supply Chain Efficiency Comes With New Risks
Retailers and distributors are no longer placing massive pre-season orders. Instead, they’re buying in smaller batches and pulling back on speculative inventory.
According to a 2025 report from McKinsey & Company, over 70% of consumer goods companies now use just-in-time or flexible fulfillment models, which leave little room for error.
Roger Bolduc, VP of Operations at ARK, explains: “This puts all the pressure on manufacturers and importers. If demand dips or a buyer cancels a PO, that surplus has nowhere to go. That’s when we get the call.”
Why Smaller Overstock Still Needs Smart Liquidation
Today’s liquidation deals look different than the truckloads of years past. Clients are moving smaller volumes, more frequently — often proactively.
“We worked with a Midwest importer in November who had just 5,000 units of a seasonal home product,” says Bolduc.
“Retail demand softened, and they knew they couldn’t hold it into 2026. We turned it around in 72 hours to a regional discount chain.”
This kind of nimble response is what’s required in the new landscape. “Liquidation isn’t a last resort anymore,” Klein adds. “It’s part of a smarter supply chain.”
The Role of Trusted Liquidation Partners
Leaner inventory means less margin for error — and more need for fast, trusted liquidation when plans change.
“There’s no room for unreliable partners,” says Klein. “We’re getting more first-time clients who’ve had bad experiences —
missed pickups, slow payments, or poor communication from online platforms.”
ARK’s value isn’t just its buyer network, Bolduc notes. “It’s trust. Our clients know we’ll protect their brand, act quickly, and handle the logistics without excuses.”
What to Expect in Q1 2026
With Q1 already underway, Klein expects to see an uptick in liquidation calls from:
- Importers who overshot on holiday merchandise
- Manufacturers adjusting post-holiday production schedules
- Distributors looking to clean out Q4 carryover
- Brands who lost retail placements due to store closures or M&A
“These are smaller deals, but they’re happening more often,” Klein says. “And that frequency creates opportunity — for sellers, buyers, and liquidators alike.”
Ready to Move Inventory?
Contact the Allen R. Klein Company today and learn how decades of experience and trusted relationships can help with your company’s liquidation needs.
