Which of the following statements does not describe a benefit of markdowns for a retailer?
A) Markdowns generate cash flow to pay for new merchandise.
B) It is a way to make room for new merchandise.
C) It rids the store of obsolete merchandise.
D) It increases customer traffic.
E) It is a way to gain a higher gross margin.

Question

Quizplus · Accepted Answer

Markdowns result in a low gross margin. Markdown money refers to funds a vendor gives the retailer to cover lost gross margin dollars that result from markdowns and other merchandising issues.

Which of the Following Statements Does Not Describe a Benefit