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In the last several days, online retailers have begun sending out a new round of promotions that mirror the inventory clearance sales at brick-and-mortar retailers.
The new deals are also far smaller than the rebates of up to $5,000 a car that auto companies have routinely promoted over the years during inventory clearance promotions at the end of the season.
C1 Kmart to Close Stores Kmart said it would take a $740 million pretax charge for inventory clearance and store closings and said investment in technology would be critical to growth.
Seven weeks after Charles C. Conaway took over as chairman and chief executive of the Kmart Corporation, the company announced yesterday that it would take a pretax charge of $740 million for inventory clearance and store closings and said a substantial investment in technology would be critical to future growth.
ATI reached $2.2 billion in product sales for fiscal 2005, though the company has a loss of $104 million, (including one-time inventory clearance costs) for its fourth quarter.
The research firm sees GM's inventory situation "coming to a head" by the end of the year unless the company "elects to lower planned production hard in the fourth quarter and/or runs a massive, and costly, inventory clearance sale".
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Dillard's has also been reducing its inventory, and clearance markdowns curbed the profit made on each sale, it said.
That is in part because there is not much clearance inventory left.
"August comparable store sales were negatively impacted due to reduced levels of clearance inventory," the retailer said in a statement.
Target was among chains that said its sales growth would have been higher were it not for its lean clearance inventory levels.
J. C. Penney, where sales dropped 0.6 percent, said in a statement that it had sold clearance inventory at a faster rate and at lower prices than in July 2009, when its same-store sales decreased 12.3 percent.
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