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Some Retailers Liquidate End-Of-Season Merchandise to Retailers Like T

Question 50

Multiple Choice

Some retailers liquidate end-of-season merchandise to retailers like T.J.Maxx,who in return sell it at a deep discount.What is the benefit to the retailer who liquidates using this strategy?


A) The retailer is able to replace the merchandise with other markdowns.
B) It provides immediate space for newer merchandise.
C) It is a profitable way for retailers to get rid of undesirable merchandise.
D) The retailer will then know to purchase less of the product for replenishment.
E) It lowers the reputation of the company who purchases the liquidated merchandise.

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