What is a common practice for managing slow-selling items?

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Marking down items for clearance is a widely recognized strategy for managing slow-selling merchandise. This approach serves to stimulate consumer interest and promote sales while clearing out inventory that may not be moving as expected. By reducing the price, retailers can attract price-conscious customers who might have initially overlooked these items at their original prices. The clearance markdown creates a sense of urgency, encouraging customers to take action before the items are removed from the floor entirely.

This tactic not only helps in freeing up valuable shelf space for new, faster-selling products but also minimizes potential losses from having unsold inventory. It is a practical way to convert slow-moving items into cash and can enhance overall inventory turnover. Retailers often have limited timeframes to offer such discounts, making it an effective strategy to address slow-selling items before they become obsolete or outdated.

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