Excess inventory in luxury goods is looking for ways to ease the pressure on balance sheets. According to Business of Fashion article, Madaluxe Group, a distributor that links luxury brands inventory to off-price retailers like Gilt Groupe and Saks Off Fifth, as of July 2020 has purchased more inventory so far in 2020 than it did in all of 2019.
Investors should monitor closely this trend, because long term profitability of brands is strictly connected to their ability to sell full price, and the off price channel is setting a long term challenge, it will take years to clear this inventory from the market and have a clean pipeline. Products live longer and cannibalize the full price sales of the new future collections.
For a real time monitoring, refer to Raw Price Stream Dataset, where most relevant retailers, including off-price, are monitored.