As one month rolls into the next, it’s the perfect time to rearrange and refresh sections of your stores. Start November off with an exciting new store display in the clearance section.
The holiday shopping season is approaching and customers are going to be all about the sales as they spend, spend, spend. To account for this mentality, an attractive and novel discount section will help you make more profit and unload backed-up inventory.
Consider the following ways you can create a popular clearance section in your store:
Why clearance is valuable
There are several ways a successful clearance section can benefit your bottom line. Holding onto inventory for too long simply takes up useful space in your store and prevents you from stocking those shelves with hot, new merchandise. A good sale will also put you in position to reach more customers and expand your loyalty base.
It’s natural for retailers to worry about how much return they can make on the inventory that isn’t selling. However, The Retail Doctor explained that often people are too focused on making back a large percentage of the amount they spent on the merchandise, when they should already consider those items as lost revenue. Once a product loses popularity and sales decline, any money gained through clearance sales should be counted as bonus profits, according to the source.
Particularly if your store sells big-ticket items, a solid clearance aisle can draw in shoppers who generally wouldn’t browse expensive merchandise at its full price.
How to boost your clearance sales
When you have a fresh clearance section ready for thrifty patrons, you have to get the word out. The Retail Doctor recommended starting with a 30 percent price cut that lasts one week. Promote this deal and its time limit with your social media followers and email subscribers, in addition to in-store signage. After one week, mark those same items down to 60 percent off and be sure to send a notification to your customer base.
Many stores let their clearance areas become hectic and disheveled, which can turn shoppers off to the idea of sifting through such chaos. Rather than assigning the clearance section to a dump bucket or table, use ladder clothes racks to display the merchandise neatly.
Beyond maintaining a tidy selection of discounted items, clever signs can draw browsers to the deals. Arrange a group of mannequins nearby that are holding posters that promote the sale. Alternatively, they can be pointing customers in the right direction. Pinterest held fun ideas, such as a display announcing “Buy now or cry later,” and another that called clearance the “good-buy section.” Consider other plays on words you can use to catch attention and unload inventory.