Retailers Offer Steeper Discounts to Clear Shelves

Retailers Offer Steeper Discounts to Clear Shelves
January 07, 2009

After one of the worst holiday seasons in decades, retailers are desperately trying to clear their shelves and make way for spring merchandise, according to the International Herald Tribune. Sales of 50 percent off stopped capturing the attention of customers weeks ago, so stores are trying to lure shoppers with promises of giveaways, bulk bargains and other gimmicks. Offers like free antibiotics, three-for-one sweaters and 90-percent-off Sony PlayStations are usually "loss leaders," a retailing term for sweet deals meant to drive traffic. The stores hope not only to clear out merchandise that is not moving, but also to draw in customers who will spend money on other items. Stores began discounting long before the holiday season, but the sales alone were not enough to clear away winter inventory. At the Samsonite outlet in Castle Rock, Colo., two free pairs of boots come with the purchase of one pair; similarly, at Domestications, a home furnishings catalogue store, three throw rugs go for the price of one. Toys "R" Us had three-for-one Crayola products, and there were three-for-one cashmere sweaters at Off Fifth, the Saks Fifth Avenue outlet chain, according to news reports.

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