A markdown, or temporary price reduction, is a common promotional tactic employed by a major retailer to lower the cost of selected items. These reduced prices are typically advertised to attract customers and increase sales volume during a specific period. Examples include discounts on seasonal goods, overstocked merchandise, or promotional events for specific brands.
The lowered price strategy offers advantages to both consumers and the retailer. Customers benefit from the ability to purchase desired products at a more accessible cost, while the business can efficiently clear out inventory, boost revenue, and enhance overall customer traffic. Historically, this pricing approach has been a cornerstone of retail strategy, evolving alongside consumer behavior and market trends to remain a significant driver of sales.
