How to Maximize a Retail Clearance Sales Promotion

Merchants can only maintain high profit margins if they make maximum use of the available selling space. If you operate a retail business and would like to maintain high profit margins while simultaneously maximizing on the available selling space, then you must find a strategy of replacing slow-moving merchandise with fast-moving or newer goods. To quickly and efficiently get rid of goods that are in low demand, you’ll need a carefully planned strategy that can enable you to identify and liquidate them.

Selecting Items

You must find an effective way of identifying items that ought to be discontinued. For instance, you can use stock control software to establish rank/ position of items in their specific product category. If something has been selling well in years gone by but has never managed to outsell other products, that’s a clear indication that it’s becoming obsolete.

If you hang on to commodities that are no longer in high demand while hoping for a rebound, it may lead to an increase in inventory costs. Additionally, they’ll occupy valuable storage space.


Whenever a selling season comes to an end, you ought to review profits generated by each commodity to identify slow-moving merchandise and improve the success of clearance sales promotion as well. When winter comes to an end, and while customers still haven’t forgotten about the snow and biting cold, you can identify slow-moving parkas since that strategy can produce better results than in summer.

Additionally, rather than cluttering your space with commodities that are out of season, you can use the space to showcase items that are currently in season since they will generate greater interest.

Biggest Discounts First

You ought to offer the greatest discount first if you wish to move clearance items quickly. Your objective is to move out slow-moving goods without necessarily earning significant profits. For that reason, a 50% discount will generate much interest. Your strategy ought to be: the slower a commodity sells, the greater the discount. It will be a good idea if you ask your supplier or manufacturer to provide facilitation.


If there is a large volume of commodities that need to be cleared within a short period of time, then you should consider holding a large clearance sale and placing adverts in local media channels. This strategy can attract so many customers to your store, and also enable prospective customers know that you are a great source of bargains.

Signage and Displays

If there are only a few commodities for clearance sale, or you run an upscale retail store, then you should keep those items on separate shelves and identify the goods with special business signs and displays.


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