For a retailer, the best way to ensure you continue to stock latest products and get your items moving is to ensure you continue to de-clutter your store so only the best merchandise remains.
This is more so especially for retail stores as " life cycles for fashion " are quick and abrupt. It is important for a retailer to get some of your investment back before it is totally worthless.
Many merchants are just hesitant to markdowns, and it is unnecessary. Your money is already gone; holding on to it just ties you to the past and all your are left with " stuff that will not sell as time grows by" and especially in apparel trade. If the clothes lying on your shelf has not sold for the last 5 months, chances are it may never get sold in the coming 6 months.
The best way to get rid of them is a "stock clearing sale" as you don't want to " have excess inventory" when you are just waiting for the latest stocks to arrive.. knowing that those will sell well
But many retailers feel that they must get back whatever they paid for their inventory, no matter how many years ago the merchandise first arrived in their store. This thinking is murder on their cash flow.
Some more retailers feel there will always be a demand for a part or accessory to a model or product, even if that product is no longer sold. Maybe on Ebay, but not on your display shelves.
inventory being like apple and milk and the more they sit there doing nothing ... the more are the chances of them getting spoiled.
Unlike Humans.. whose power of thinking and rationalizing gets better with age. Merchandise Doesn’t Get Better With Age. It only stops you from getting better returns
Too many retailers avoid aggressively clearing out old merchandise either because they feel they will lose money when they sell it, or it’s too complicated to know what to clear out. Neither is true. If merchandise is old, you’ve already lost the money. The fact it is sitting on your display shelves doesn’t make that any less true, but it does make your entire store look dated, out-of-touch or just plain old.
