Eli5: what happens to clothing in stores like Macy that goes on huge clearances and never get bought?
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One thing to think about is that the company wants to make a profit on the whole batch of how every man thousands of items were produced. They know they won’t make a profit on each individual item. They have to keep product moving to make way for the next thing – season, fashion, whatever. So they need to get the old stuff off the shelves and out of the warehouse. Holding onto stuff costs money.
They are often first sold in bulk to discount stores – Ross, Marshalls, TJ Maxx, Burlington and others. Someone I know at TJ Maxx said anything they can’t sell is the sold to another kind of store, let’s say “lower” on the rungs.
Eventually though, some things will get sent to like Goodwill or simply put in the trash.
Remember, holding onto stuff costs money, and the company just wants to be done with the actual inventory at some point.
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