How should retailers approach seasonal product transitions?

Retailers should approach seasonal product transitions by promoting clearance sales for old products. This strategy allows retailers to effectively manage their inventory by incentivizing customers to purchase items that are being phased out due to changing seasons. Clearance sales help in freeing up shelf space for new merchandise, which is essential for maintaining an appealing and relevant product lineup that meets current consumer demand.

By actively promoting these sales, retailers can boost their sales volume and improve cash flow while simultaneously minimizing the impact of obsolete stock. This approach not only helps in the transition to new products but also creates a sense of urgency among customers who may be looking for bargains, thus attracting more foot traffic or online engagement.

This method is more effective than completely removing old stock, which may lead to missed sales opportunities. It’s also preferable to stopping promotions entirely during new seasons, as maintaining promotional activities can keep customers engaged and returning for new items. Lastly, reintroducing old products can confuse customers if they are cluttered by the new offerings, limiting the fresh appeal that the new season represents.