Clothing Inventory Reduction Done Right

Clothing Inventory Reduction Done Right
  • Opening Intro -

    Too much inventory in the store and in warehouses can be a problem.

    This is especially so when that inventory is clothing where quickly changing seasons require that inventory be moved sooner rather than later.


Your excess inventory may be due to a recession, from over buying or to a change in consumer demand. Regardless of the reason, you can move out what you have without losing your shirt.

1. Slash prices. Clothing mark up is typically at 100 percent or more, giving you plenty of room to offer discounts. Avoid the incremental discounting and go with the big price cut from the start. Shave as much as one-half to two-thirds off of the price of clothing and get the word out. You’ll attract bargains seekers who will help clean out your inventory fast and completely.

2. Contact other stores. Your competitors might be interested in taking your inventory off of your hands. Or, you may be able to exchange inventory. For instance, if you have too many ladies’ belts and your competitors is overwhelmed with purses, and exchange can solve the problem for both concerned.

3. Sell it online. Expand your customer base by selling your inventory online. You can work through Amazon, eBay or other large retail site to promote your goods and ship them. Using the same discount idea in the first step, you can price your inventory to sell and move out quickly.

4. Bundle your items. Some items sell better when sold together. With clothing, especially ladies’ clothing, a full outfit will sell better than a single item. Match up blouses, skirts, belts, purses, shoes, and other accessories and sell a complete wardrobe. You’ll move everything faster than selling each piece alone.

5. Cut your losses. With a seasonal change looming, time is of the essence. Unfortunately, you don’t have the time to price everything, advertise and hold a sale. This is where liquidators come in, companies that will buy up your entire excess inventory and resell it. You’ll clear out your inventory quickly and have money to show for it. You may also find that you can claim a tax credit to reflect your loss.

6. Donate your inventory. You won’t get money if you donate your inventory, but you’ll provide a charity with much-needed clothing. You’ll also take an important tax deduction and you may still be able to deduct your loss. Talk to your accountant about your options.

Inventory Reduction Considerations

With your inventory clogging up your warehouse and bringing no money in, taking aggressive action can put cash in your pocket immediately. Do what it takes to move your inventory and work toward not accumulating more clothing than you need in future seasons. Inventory can be difficult to manage and when a recession hits, it can drag down your entire business.

Author Information

Jason Ragland is a professional blogger that shares tips and advice on managing a safe and successful warehouse environment. He writes for Material Handling Exchange, where you can find quality new and used warehouse shelving systems.


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About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".