One early e-mail discussion addressed the couple's desire for a sleeper sofa: Ms. Kwinter-Schwartz suggested the Manstad from Ikea, but then found out that Avery Boardman, a high-end custom upholstery company in the Decoration & Design Building, was planning to start selling some merchandise at clearance prices, so she called a contact there to ask for an early look.
Buying directly from apparel makers, rather than waiting for clearance merchandise, has advantages because the Studio stores will have dependable offerings, Mr. Lind said.
K&G emphasizes that its clothing "is new, not close-outs, not clearance merchandise," said Mary Beth Blake, president at K&G in Atlanta, "and the sale is from Day 1; you don't have to wait".
Federated Department Stores offered 20 percent-off coupons for holiday clearance merchandise at its Macy's and Bloomingdale's chains, while Circuit City gave away a DVD player with each purchase of a projection television.
The strategy speaks to several economic realities in the postrecession retail world: the soft real estate market has left desirable small storefronts unoccupied; many traditional outlet stores have too little clearance merchandise to sell because retailers have trimmed inventories; and as the recovery stumbles, even luxury retailers cannot afford to ignore the price-conscious shopper.
"The company moved more holiday clearance merchandise than previously expected," Gap said in a press release.
Quietly, major retailers and their authorized liquidators have begun selling clearance merchandise on the auction site.
In addition the company took heavy markdowns in August last year, so that 35% of total sales was clearance merchandise.
Gross margin dipped due in part to more sales of clearance merchandise.
While company officials blamed the current sales shortfall on too much clearance merchandise a year ago, they also cited a weak sales environment for retailers.
