Distress merchandise
Distress merchandise, also known as distressed inventory, refers to goods that a retailer needs to sell quickly in order to free up space and generate cash flow. This type of merchandise is often sold at a significant discount in order to move it off the shelves quickly.
There are several reasons why a retailer might need to sell distress merchandise. For example, a store might have overstocked on a particular item, or a supplier might have gone out of business, leaving the retailer with excess inventory. In some cases, a retailer might need to sell distress merchandise in order to make room for new stock.
One common example of distress merchandise is clothing that is out of season. Retailers will often sell these items at a discount in order to make room for new seasonal items. Another example is electronics that are no longer popular or have been replaced by newer models.
It’s important for retailers to move distress merchandise quickly in order to avoid taking a loss on the items. By offering discounts and promotions, retailers can attract customers and generate cash flow from merchandise that might otherwise sit unsold.
Examples of distress merchandise:
- Out-of-season clothing
- Obsolete electronics
- Overstocked items
- Closeout items
By selling distress merchandise quickly and at a discount, retailers can free up space in their stores and generate much-needed cash flow. It’s a win-win situation for both the retailer and the customer.
For more information on distress merchandise, you can visit Wikipedia.