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High prices and poor supply chain management are driving the growth of liquidation grocery stores

Published: 23 February 2026

The price of groceries is rising—and so is the number of liquidation grocery stores. Once considered a niche option for cash-strapped shoppers, liquidation grocery stores are now being used by a broader cross-section of Canadian society, according to reporting in Canadian Grocer. The growth of liquidation of stores like Liquidation Marie reflects broader supply chain pressures, says Yu Ma, a Professor of Marketing at 鶹ýվ Desautels.

“It is a direct result of current forecasting inaccuracies,” Ma says. “It suggests traditional retailers are struggling to predict consumer behaviour post-pandemic. Once goods are in the pipe, it’s often cheaper for a brand to liquidate overstock than to pay for warehouse space or reverse logistics.” And brands are increasingly using liquidation strategically. “Instead of seeing liquidation as a failure, they see it as a recovery valve in the current economic situation.”

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