Share this on

Independent Ally to Host Wholesale "Flash Sales" for Specialty Retailers

Jane Kitchen -- Kids Today, 8/30/2011 5:25:23 AM

Hampton Falls, N.H. - When Jessica Denio, a second- generation specialty retailer at Baby Go Round here, saw the growing power of "flash sale" sites like Zulily and Totsy, she wondered why manufacturers couldn't offer the same deep discounts to the specialty retailers they were already doing business with.
     "They know we're here and we'll buy this stuff," said Denio. "So why are they jumping to this very public, very discounted new form of sales?"
     The answer, it seemed, was that the flash sale sites were able to deliver a tremendous volume of sales in a very short period of time, and manufacturers weren't convinced that specialty stores could do the same.
     So Denio formed Independent Ally, a network of independent specialty stores across buying groups that come together for the same short-term, deep discounts manufacturers have been offering to flash sale sites.
     Denio said she's spoken to manufacturers who are sold in 95% of specialty stores that use sites like Zulily, but would rather offer the same deals to the specialty stores they're already selling to - providing the specialty stores could turn over the volume.
     "They've said, ‘If you're going to show us one place where we can all go, we'd prefer to keep it in channel,'" said Denio. "...At its core, we're going to bring any store that's independent and has a brick-and-mortar element and give them the opportunity to buy these products at a wholesale discount."

Here's how it works:
Brick-and-mortar specialty retailers sign up at independentally. com by providing a bit of information about their store and creating a username and password. The only thing they are committing to is receiving weekly emails with available deals. On any given week, if they like the deal, they can participate; if not, they need not do anything.
     Independent Ally works with manufacturers who need to move product quickly to create a one-time, short-term deal for specialty retailers. The products could be overstock or discontinued items, or a color that's less popular, or perhaps the manufacturer just needs to create a bit of cash flow or move products out of a warehouse quickly to make room for a new shipment.
     Retailers have between three and five days to take advantage of the deal, and pay for the merchandise up front. They can choose to use the merchandise however they'd like once they purchase it - by having sales to get customers in the door, or to build margin in.
     Manufacturers can come up with the terms of their own sale, even specifying a number of items that must be sold in order for the discount to take place.
     Independent Ally then broadcasts the sale to the membership, and includes a timer on how much time is left of the sale and how many more products need to be purchased to reach the buying threshold.
     The manufacturer sells enough product that it makes the discount worthwhile, and gets a check at the end since it is all pre-paid. The retailer gets some excellent deep discounts on products.
     "It has to be a win-win situation for both manufacturers and retailers," said Denio.
     The program will launch in September, but specialty retailers can sign up to be part of it today - there is no charge and no commitment.
     "We've all tried again and again to have specialty product for specialty stores to see how we can stay afloat in a world of big box and Internet," said Denio. "Ignoring the price factor is not an option anymore... This is a new, techy way to look at it that might help some of us out."
     Denio, a long-time Baby Furniture Plus member, is quick to point out that Independent Ally is not meant to replace the various specialty store buying groups that negotiate year-long deals for their members.
     "This could work very nicely, hand-in-hand with buying groups, and is not meant to replace what they do," said Denio.
     Flash sale sites have really only gained momentum in the past few years, but have quickly changed the way customers buy product.
     "This is the new competition," said Denio. "(Flash sale sites) are only growing. This is a new way of doing business."

Share this on

Talkback

We would love your feedback!

»MORE

Featured Company

Wright Labels

Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more