PGA Merchandising Practice Test

Question: 1 / 400

What is the main purpose of a markdown schedule?

To plan promotional events throughout the year

To manage supplier contracts

To organize stockroom space

To outline price reductions for clearing out old inventory

The main purpose of a markdown schedule is to outline price reductions for clearing out old inventory. This is essential in retail management as it helps in systematically reducing prices on items that are not selling as expected or are nearing the end of their product life cycle. By establishing a markdown schedule, retailers can strategically time these reductions to optimize sales and reduce excess inventory, ultimately making room for new stock. This approach not only aids in inventory management but also enhances cash flow by encouraging sales in a timely manner. Such schedules usually take into account various factors including sales trends, seasonality, and the need to meet financial targets.

Get further explanation with Examzify DeepDiveBeta
Next Question

Report this question

Download PGA Merchandising Practice Test PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy