Worked scenario
Last summer's stock priced as though it were still summer
Holding seasonal clothing for a year rarely recovers value, and the decision to hold is usually made by not deciding.
3 min read
A season ends with stock remaining. Packing it away feels better than discounting it, because discounting is a visible loss and storage is not.
Storage is a decision with a cost
Space, capital and the near-certainty of a deeper discount later. None of it appears anywhere, so the choice never gets compared with clearing at the end of the season.
Decide inside the season
Sell-through at eight weeks predicts the outcome well enough to act on. A line at thirty percent will not clear at full price, and the discount that works now is smaller than the one required in fourteen months.
What changes
- Age of stock visible by season and by line
- Clearance decision taken within the season, on sell-through
- Carry-over identified deliberately, with a reason
- Value of stock held over measured against what it realises
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