So, here are some tips to help move clearance items quickly.
In an ideal world, products never make it to a clearance rack. So ask yourself, are you doing everything you can to showcase seasonal items to ensure they sell at full price? Despite your best efforts, sometimes an item just isn’t as tempting as you thought it would be, or maybe you over-ordered. It happens to every retailer, which is why planning your clearance area should be part of your overall merchandising plan.
If you think of products destined for clearance as unwanted failures or discards, your attitude will inevitably be reflected in how you present them. Forget that! Clearance space is, in fact, the land of opportunity for bargain-conscious shoppers. So make it a destination in your store — though, of course, not a primary one.
You may want to display sale items in more than one place. This is especially true if you have small, inexpensive things that you can offer as impulse buys at your cash register. With a fun sign and a BOGO offer, they’ll move right out.
Speaking of signage, remember that red is the most “arresting color,” ideal for helping customers spot your clearance rack. Experienced retailers recommend using dollar amounts on your signs — this bin $20, this shelf $10 — rather than “25% off.” That way, shoppers don’t have to calculate what items cost, and they are instantly prepared to spend whatever the sign says.
Discounted pricing is a must to make those clearance items fly off the shelves. There are two schools of thought here:
What else gets things moving?
Finally, consider promoting new clearance opportunities to your customers (or certain segments) via email or social media. But only if it won’t dilute or damage your brand reputation. If you’re worried about being seen as a “bargain” brand, stick to in-store clearance promotions.