Eli5: what happens to clothing in stores like Macy that goes on huge clearances and never get bought?

Question

Eli5: what happens to clothing in stores like Macy that goes on huge clearances and never get bought?

In: 2

Answer 1

There is a chain of distributors that clothing “falls” down:

New clothing gets put in high end stores and sold for high prices.

Clothes that don’t sell get put on sale after a while.

Clothes that don’t sell on sale get sent to “budget” stores like TJ Maxx, Marshalls, or others.

Clothes that don’t sell then get donated or sold to charities, who may offer it for sale in stores like Goodwill or Salvation Army.

Clothes that don’t sell there are sold (not donated) to third world countries. This is why you will see little kids in Africa wearing clothing with american designer labels.