what is a liquidation store

A liquidation store is a retail shop that sells off a companys inventory, typically at a big discount, to generate cash. Liquidation sales often occur as part of a bankruptcy filing, but not necessarily. A business could liquidate most or all of its inventory as part of a move to a new location, thereby saving money on having to transport all of it to a new storefront. Liquidation stores are also known to sell open-box items, returned items, models used for product photography, and discontinued products. These stores are able to sell clothes, electronics, furniture, and toys (among many other things) at way-below-MSRP prices because they buy them at a discount. However, it is important to note that some of the products might be a little damaged or missing some parts, so it’s a good idea to give everything a once-over before buying it. Liquidation sales offer few bargains, and the prices are not always that good. Discounts weren’t great at first when the liquidation sales began, but they can increase over time.