Overstock is selling off other retailers' unsaleable inventory as U.S. home furnishing demand plummets

It is learned that according to foreign media reports, US home furnishing e-commerce Overstock will clear out unsaleable inventory of retailers such as Target and Walmart to help them solve the problem of overcapacity and reverse the company's losses. Overstock has reported declining revenue for three consecutive quarters.

It is reported that as the epidemic eased, US consumers began to turn to travel and spending outside, and the demand for outdoor furniture, small appliances and some electronic products fell faster than expected. Coupled with supply chain disruptions, the arrival time of many goods missed the ideal sales period, resulting in large-scale inventory backlogs for retailers.

According to reports, Overstock was founded in 1999 and initially focused on brand discount sales platforms. After Patrick Byrne became CEO, Overstock transformed from a "brand discount sales platform" to a "retailer of home furnishings." Because home furnishings have higher profit margins and faster sales growth, this shift has enabled Overstock to explode in growth during the pandemic. In 2020, Overstock's stock price soared 580% and continued to rise in 2021.

However, as supply chain disruptions, inflation and the war in Ukraine continued, Overstock was hit hard in 2022. The company's revenue in the first quarter was US$536.04 million, a year-on-year decrease of 19%, and its stock price fell 48%.

Industry insiders predict that surging inflation in the United States will push shoppers toward Overstock's online marketplace as consumers tend to look for lower-cost solutions and Overstock's ability to offer a wide variety of discounted products gives it a competitive advantage.

"Overstock will benefit from clearing out slow-moving inventory from other retailers as online shopping wanes or consumer interest in the home furnishing category wanes," said Tom Forte, an analyst at DA Davidson.

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