Question

It was the end of the winter holiday season, and the retail store was already beginning to receive items for the next holiday, Easter. So what tactic should the store do to help make room for the new items?

a. Discontinue the holiday items
b. Markdown the holiday items
c. Mark the holiday items out of stock
d. Store away the old holiday items for next season

Answer 1

The retail store should mark down holiday items to clear existing merchandise and prepare for new Easter stock, avoiding storage costs and maintaining customer interest.

Step-by-step explanation:

To make room for new items for Easter, the retail store should consider marking down the holiday items. This strategy helps to clear out existing merchandise while offering attractive prices to customers, encouraging them to purchase the discounted items. By doing so, not only does the store free up space, but it also minimizes the need to store items for a whole year, which might not be practical or cost-efficient. Additionally, the store avoids the potential loss of loyal customers who might seek alternatives if the items they want are marked out of stock. Discontinuing items could be an option but is not often favorable as it may lead to loss of potential revenue.