Brand Clearance to open new outlets

An Auckland-based clearance outlet is expanding to three sites on the back of strong sales from rejected shipments, wholesale bargains and retail receiverships.

Brand Clearance was launched in February last year by retailer Sandy McNeur, the former owner of successful discount streetwear retailer Skoop.

The ongoing economic downturn has benefited Brand Clearance. Receivers of retail chains looking to unload stock can freight it straight to Brand Clearance's St Johns store, and then collect cash, Mr McNeur said.

"They don't have to hire staff, run stores or worry about holiday pay. It makes it very easy for them." Wholesalers approach Mr McNeur daily with bulk shipments on offer.

He received a shipment two days ago (subs June 15 from a "major" nationwide retailer that had been rejected because it arrived a day late.

The rejections are a sign of the times, he said.

"There have been quite a few like that. You wouldn't have seen that even a year ago, we seem to have reached a tipping point."

Other stock he buys direct from wholesalers through negotiated deals, such as his long-standing position as a discount retailer for Australian brand Ben Sherman.

He makes a mark-up on this stock, and takes 50 per cent of each sale made on behalf of the receivers he deals with.

It's the growth in quality, branded stock that has driven the growth of the Brand Clearance business, he said.

Initially the store was earning about $50,000 "on a good weekend" but the store was now moving about 5000 units worth up to $500,000 a month, with a full retail value of about $1.5 million.

Among the brands hanging from the intentionally "budget" racks in his warehouse are Kiwi labels such as Huffer and Federation, alongside international labels like Lacoste.  Expansion is planned, now, he said.

"We are currently looking for two sites in Auckland, likely Ponsonby and maybe out east, somewhere like Pakuranga.''

Eventually Brand Clearance will have four distinct outlets  "generic", like the St Johns branch, street wear, furniture and home wares, he said.

The long-time rag trader has no desire to launch outside Auckland.

"There are 1.4m people living here, and I believe 99.9 per cent of them don't know we exist. Now we're looking to let them know.''

- © Fairfax NZ News