Retail's New Playbook for Excess Inventory: A Strategic Alliance

CALABASAS, CA – January 14, 2026 – In a significant move to address one of modern retail's most persistent challenges, excess inventory solutions leader Reflex Sales Group and branded warehouse sale operator Alternative Retail have announced a strategic alliance. The partnership creates a comprehensive, hybrid ecosystem designed to give brands unprecedented control over how their surplus goods are monetized, tackling the burgeoning problem of overstock and e-commerce returns head-on.

This collaboration merges Reflex's extensive global distribution network with Alternative Retail's proven model of high-impact, direct-to-consumer warehouse sales. The result is a unified platform that promises to protect brand integrity while maximizing financial recovery, a dual objective that has long eluded many in the apparel, lifestyle, and consumer goods sectors.

The Billion-Dollar Overstock Problem

The challenge this alliance aims to solve is not a niche issue but a systemic one, costing the retail industry staggering sums. The global reverse logistics market, which handles everything from returns to overstock, was valued at over $690 billion in 2024 and is on a trajectory to surpass $1 trillion within the next decade. This explosive growth is largely fueled by e-commerce, where return rates can be as high as 30%, compared to less than 9% for brick-and-mortar stores.

For brands, these returned and unsold goods represent a significant drain. In 2024 alone, returns cost U.S. retailers nearly $890 billion. Beyond the direct loss of a sale, each item of excess inventory incurs substantial holding costs—including warehousing, insurance, and depreciation—which can amount to 25% of the inventory's total value annually. This ties up capital that could otherwise be invested in innovation and growth.

Furthermore, the traditional methods of offloading this inventory often force brands into a difficult compromise. Selling to bulk liquidators can lead to goods appearing in uncontrolled discount channels, eroding the brand's premium image and potentially cannibalizing full-price sales. The alternative, destruction of goods, is not only a complete financial loss but also an environmental and ethical liability that modern consumers and investors increasingly reject.

A New Alliance Forging a Hybrid Solution

The partnership between Reflex Sales Group and Alternative Retail is structured to provide a strategic alternative to this dilemma. It operates on a two-way collaborative model that offers brands a crucial element: choice.

Under the agreement, Reflex, based in Calabasas, will act as a sourcing and buying arm for Alternative Retail's popular warehouse sales. It will identify and introduce its vast network of brand partners to these controlled, high-energy consumer events, which are primarily held in Southern California but are expanding nationally. In turn, Costa Mesa-based Alternative Retail can offer its brand partners access to Reflex’s discreet international distribution network for inventory that may be better suited for overseas markets.

This creates a flexible, multi-channel exit strategy. A brand can now strategically divide its excess stock, directing one portion to a high-margin, brand-positive warehouse sale in the U.S. and another to off-price channels in non-competing global markets, all through a single point of contact. The decision is based on the brand's specific goals for margin recovery, timing, and brand positioning.

"Brands are looking to think outside of the box for how they move inventory, and each brand's taste and appetite is unique," noted Travis Smith, founder and CEO of Reflex Sales Group. "This partnership combines the strengths of two trusted operators to create a unified approach that protects brand integrity while maximizing value across channels."

Echoing this sentiment, Scott Perkins, co-founder and CEO of Alternative Retail, emphasized the importance of control. "We've seen firsthand how important it is for brands to feel in control of their off-price strategies," he said. "By aligning with Reflex, we're expanding exit opportunities for our brand partners — giving them both the local reach of Alternative Retail's high return events and the global reach of Reflex's network — all under a structure designed to optimize outcomes and uphold brand standards."

Redefining Value and Protecting Brand Integrity

What sets this alliance apart from conventional liquidation is its focus on maintaining the perceived value of a brand. Alternative Retail has built its reputation by hosting clearance events for sought-after lifestyle and performance brands like Vuori, TravisMathew, and Pacsun. These are not chaotic discount bins but curated shopping experiences that draw loyal customers and move a high volume of product in a short period without the negative stigma of a typical closeout sale. By channeling inventory into these events, brands can achieve higher recovery rates while treating the sale as a community-building marketing event.

Simultaneously, Reflex’s expertise in global off-price channels provides a discreet and effective solution for larger volumes or specific product categories that need to be moved out of the primary domestic market. The company’s model, which includes prepaying for inventory, offers an immediate cash flow benefit to brands, freeing them from the financial burden of holding onto depreciating assets.

This integrated approach directly addresses the financial strain of excess inventory. By converting stagnant stock into liquid capital more efficiently, brands can improve their balance sheets, reduce write-offs, and reinvest in their core business. The partnership effectively transforms the end-of-life stage of a product from a logistical headache into a managed, value-generating process.

The Sustainable Imperative in Modern Retail

Beyond the clear financial and brand benefits, this alliance also represents a step forward in the retail industry's push toward greater sustainability. As environmental, social, and governance (ESG) metrics become more critical for investors and consumers, the practice of destroying unsold merchandise is facing intense scrutiny. Inefficient reverse logistics contributes significantly to carbon emissions and landfill waste.

A controlled, multi-channel system for reselling excess inventory offers a powerful alternative. By extending the lifecycle of products and ensuring they find a home with a consumer, the Reflex-Alternative Retail model inherently supports a more circular economy. It reduces waste and minimizes the environmental footprint associated with overproduction and returns.

This alignment with sustainability goals is becoming a competitive advantage. Brands that can demonstrate responsible inventory management are better positioned to attract conscious consumers and meet evolving regulatory standards. The new program, which has already launched with select brands, is poised to expand throughout 2026, offering a scalable model for how the industry can tackle its inventory challenges responsibly and profitably. This strategic partnership may well become a blueprint for the future of off-price retail, where control, value, and sustainability are no longer mutually exclusive goals.