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Some Retailers Liquidate End-Of-Season Merchandise to Retailers Like Winners, Who

Question 54

Multiple Choice

Some retailers liquidate end-of-season merchandise to retailers like Winners, who in turn sell it at deep discounts. What is the benefit to the retailer who liquidates using this strategy?


A) Manufacturers know they should produce less of the product for replenishment
B) The retailer is able to replace the merchandise with other markdowns
C) It lowers the reputation of the company who purchases the liquidated merchandise
D) Vendors like it because they are able to sell the merchandise to another retailer
E) It provides space for new merchandise

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