Luck Rack is an off-price store launched by the GEO Group in 2019 that purchases (via partner companies) and re-sells brand-new products that, for one reason or another, have passed their conventional sell-by dates. The GEO Group is expanding its network of Luck Rack stores by leveraging its operating expertise in the second-hand goods business, such as retail space creation and appropriate price setting to resell procured merchandise.
The disposal of surplus inventory has become a global social issue in recent years, particularly in the apparel industry. Off-price stores are expected to provide a solution to this serious problem without creating additional environmental impact.
Under the off-price store model, brand-new and surplus products that have been discarded after passing their conventional sell-by dates are purchased from manufacturers and subsequently re-sold at reduced prices within a single retail location.
While this circular system is not yet well established in Japan, it has garnered attention as a new mode of shopping that allows customers to purchase valuable Brand-new products at discounted prices while also being environmentally friendly.
Unlike outlet stores where manufacturers market surplus inventory and dedicated outlet offerings of their own brands, one feature of off-price stores is that they purchase and re-sell excess inventory from a wide range of brands including those without their own outlet stores. The off-price business model is well established in the U.S. where it has achieved recognition even among typical retail consumers, and Japan’s off-price market is also expanding.
Luck Rack collaborates with more than 480 companies to sell new products at 30 to 90% off their regular price. Stores offer products with a focus on ladies’ and men’s fashion, as well as cosmetics, household goods, and home fashion, with some stores featuring more than 20,000 items.
As the pioneering off-price store in Japan, we will continue to provide a new format that enables customers to make valuable purchases without damaging the manufacturer’s brand.
