Clearance merchandise
Clearance lines can be presented in numerous ways:
Reduced goods can be pulled together and placed at the front of the store, enabling the customers to browse through them and then walk farther into the non-sale items in-store.
Sale goods can be used as a magnet to draw customers to the back of the store, leading them past the non-sale items.
Individual departments can use selected fixtures to hold sale lines.
Larger stores, like department stores, have been known to dedicate a whole floor to sale goods, usually on the least profitable floor (often the one farthest away from the main entrance), especially when the sale has finished and there is remaining discounted merchandise that has to be sold.
Large chain stores often rely on completely separate discount stores branded under their name to move sale lines or overstocked products.
Covering the windows with vinyl is an effective and powerful way of projecting Selfridges’ sale message in London.
Clearance merchandise should not be overlooked. Sale times are extremely profitable for retailers. Most major stores will proudly present their discounted products twice a year and benefit from their competitors following suit and thus attracting customers to the area. Many stores will continue to sell items at a reduction all year round.
It is important to understand the store’s philosophy and requirements when approaching markdowns. Many retailers hide their markdown offers toward the rear of the store, as if they are ashamed of them; others will proudly display them in the platinum and gold areas, hoping to generate on-the-spot sales, which can be more effective. Sometimes individual departments may have sale items when the rest of the store does not. In this case, a department can also adopt this process by placing the sale items at the front or back of the department.
Sales signage
It is worth considering how you wish to promote the reductions at sale times. Many retailers like to show the original price and the corresponding reduction next to it. Many also like to show the percentage saved in the sale for the customer. It is unwise to use all of these methods on one tag, however, as it may become confusing. Once your sale signage strategy is decided, it is best to apply the same approach throughout the whole store so the customer receives just one overall message.
Many shrewd retailers often add a phrase in small print on the tags, such as “up to xx percent off” or “many items at xx percent off.” This is not illegal in many countries, but it is wise to check with local retailing regulators beforehand.