PORTLAND, Ore. — Big going-out-of-business sales don’t always mean big savings for consumers.
"I think going-out-of-business sales are often a good deal for the business going out of business," said retail expert Tom Gillpatrick of Portland State University’s School of Business Administration.
Many shoppers don’t realize that outside liquidation companies run most going-out-of-business sales. You might get a deal on some items, but others can be overpriced.
“They’re in it to make money,” said Gillpatrick. “It's a bit of a game. They may mark a few things down deeply to draw you in. The initial discounts aren't that big.”
To compare prices, KGW visited Sports Authority in Hillsboro, which is undergoing a liquidation sale. The store has a large banner and signs outside reading “Store Closing” and “Everything on Sale.”
Inside, a lot of the inventory had already been picked over. But there were deals.
A Huffy Green Machine was marked 40 percent off. At $65.99, it’s priced much cheaper than competitors.
Not everything was a bargain.
A green Flybar Master Pogo Stick was marked down to $48.99. A quick online search found the exact same price elsewhere.
A Nerf Zombie Strike Cross Bow was marked 30 percent off. It was on sale for $20.99 at Sports Authority’s going-out-of-business sale.
We walked next door and found that exact same toy on the shelf at Target for $19.99. We bought it at Toys R Us for $15.99.
The Sports Authority website has the Nerf cross bow advertised for $19.99. We tried reaching Sports Authority for an explanation. A public relations firm for the company did not reply.
Consumers looking to save should wait. As the weeks go by, liquidators slowly begin to lower prices.
“As the inventory sells, they’ll ratchet it down,” said Gillpatrick. “It's a game of selection versus price."
Shoppers should always compare prices and remember that often, there are no returns when a retailer is going out of business. Sales are usually final.