Ace the DECA Retail Merchandising Showdown 2025 – Unleash Your Sales Savvy!

Question: 1 / 400

What is the primary purpose of markdowns in retail?

To maintain high price points

To clear out old inventory and stimulate sales

The primary purpose of markdowns in retail is to clear out old inventory and stimulate sales. Markdowns are reductions in the original selling price of products, which often become necessary when items are not selling as expected or are becoming obsolete in terms of trends and seasons. Retailers use markdowns to attract customers by providing them with a sense of urgency and value, encouraging them to make purchases they may not have considered at the original price. This strategy helps to free up shelf space for new products, reduce carrying costs for unsold merchandise, and ultimately improve the overall financial health of the store by increasing cash flow. By promoting consumer interest through lower prices, retailers can effectively manage their inventory levels and minimize losses associated with overstock.

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To secure exclusive deals with suppliers

To increase product variety

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