Many retailers are hesitant to mark down their merchandise, worried that they will lose money or concerned that their customers will ignore their full-priced merchandise in favor of a ‘deal.’ Other retailers might decide to mark down items and then opt not to identify the markdowns.
A store’s merchandise should be earning its real estate. Every item you place on a shelf or rack is ideally positioned proportionately to the sales it can generate. For example, out of season items on your primary walls won’t generate the level of sales your ‘wear-now’ product will. When product sits for too long without moving, that merchandise hasn’t paid it’s rent. Not only are you losing money on that merchandise, but you are also missing an opportunity to properly position and introduce new product.