Retail surplus finding its way to wholesalers

Excess stock from organized retail stores is ending up at wholesalers who are selling it at huge discounts. There seems to be an informal cash-and-carry business going on, where organized retailers are dumping excess stock to wholesalers. According to KS Ramesh, the former COO of CavinKare, “Dumping stocks back into the channel is a regular method to get rid of the excess inventory. But it’s mainly companies that don’t have a strong management direction that would let this continue.”