The dynamics of discount, off-price and secondary markets are shifting — they’re growing, evolving and fueled by consumer behavior. And for CPG teams managing excess inventory, these shifts matter.
In 2025, these channels are no longer the quiet end of the retail spectrum. The risks of the discount market are starting to be outweighed by opportunity. But in order to take advantage, CPGs need technology and data visibility that can meet the challenge.
Let’s take a look at the big trends this year in the secondary market, what to look for in the year ahead and how CPGs can use these shifts to improve their liquidation efficiency.
The U.S. discount and off-price retail market is accelerating.
Discount and off-price retail is expanding fast in the United States and you don’t have to look hard to find proof.
On TJX’s most recent earnings call, leadership noted that “customers were drawn to our excellent values and brands… customer transactions were up at every division.”
Grocery Outlet’s net sales are up 5.4% YOY in Q3, with gross margin at the top of their guidance and store openings ahead of forecasts.
Total sales increased by 10% in Q3 at Ross, with broad-based growth across all categories. For the fourth quarter, Ross forecasted their highest increase in a decade, with comparable store sales expected to rise by 3-4%
For CPGs, this all means opportunity. But with opportunity comes competition — and tighter expectations around price, delivery and brand integrity. Liquidation may offer more upside, but only for CPGs that approach it with structure and discipline.
The secondary-market ecosystem is expanding and diversifying.
Alongside off-price growth, the broader resale and liquidation ecosystem is evolving. With new “treasure hunt” e-commerce platforms alongside well-respected value stores, the universe of buyers who want name-brand products at a discount is expanding.
For CPGs, this means more opportunities, but also more challenges in managing these channels. It’s no longer a question of “should we sell to an off-price retailer,” but which one, under what terms and at what price?
With the increase in channels comes an increase in pressure to get products into the hands of interested consumers. Speed-to-market, buyer segmentation, traceability and data analytics become critical for leveraging these channels effectively. Channel fragmentation also means more governance risk — unless you have visibility and control.
Consumer behavior and a value-mindset continue to fuel discount retail.
Consumers are hunting for value — not just because prices remain high, but because the stigma of buying discounted goods has disappeared. Retail earnings across the board are beating forecasts, as shoppers hunt for goods at great prices and love discovering new brands at a discount.
Discount retailer Martie’s co-founder said it best: “Martie customers are looking for products they don’t typically see in their local grocery stores and for an opportunity to discover new brands.” They prove that by becoming repeat customers — 83% of Martie customers report buying the same products at full price later.
This mix of both economic reality alongside social shifts means that demand at discount and value channels is stronger than many CPGs expect. When excess inventory flows into the right secondary outlets, it often performs better — and more quickly — than predicted.
Discount risks are real — but outweighed by opportunity (with guardrails).
But as discount channels grow, so do the risks. Price-reference erosion, brand dilution and unauthorized buyer flows can increase. Channel leakage can lead to inconsistent presentations and blind spots in data for CPGs.
However, when managed well, the upside of discount growth far outweighs the downside. Strategic and efficient liquidation can contribute to margin recovery, sell-through gains, reduced waste and improved sustainability performance.
With the right guardrails, risks become manageable. With the right technology, they become predictable.
Technology and logistics are essential for liquidation success.
Off-price retailers and secondary buyers thrive on speed. That means CPGs need to meet them by offering excess inventory and refreshing assortments rapidly.
Something as simple as changing pricing according to shelf-life can be the difference between moving product or not, but for many teams without enough time or the right tools, even simple processes are out of reach.
Because liquidation is no longer as simple as selling excess to a single discount partner, CPGs who want to take full advantage of their excess inventory must think about logistics as well. Platforms, buyers, channels, timing and visibility all play a role.
This is where Spoiler Alert comes in — digitizing workflows, standardizing data, managing offers, routing product intelligently and helping CPGs move quickly without compromising brand standards. With Spoiler Alert, CPGs can succeed in the growing discount and secondary market while protecting their brands.
Want to learn more about how CPG liquidation has evolved in 2025? Read our full report here.
