Clearing Merchandise

Q: Thankfully, my business has been really good lately. Should I hold back on taking further markdowns this season?

A: No, just the opposite. Business is good because merchants started taking moderate markdowns early on. In order to keep your business up, you need to clear out all of your old goods so you can land new merchandise. This means you have to keep on track with your planned markdowns. Remember that your ability to build margin is directly related to the margin you have on the floor, so the sooner you have new, full-priced goods, the better.