End Of Season Sale in Apparel Retail Industry

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sparx
Posts: 21
Joined: Fri Nov 02, 2012 4:49 pm

Re: End Of Season Sale in Apparel Retail Industry

#1 Postby sparx » Mon Sep 22, 2014 3:21 pm

Various retail chains usually offer these type of offers just to make space for the new stock.

shemeem577cms
Posts: 15
Joined: Fri Apr 25, 2014 6:47 pm

End Of Season Sale in Apparel Retail Industry

#2 Postby shemeem577cms » Sat Jul 26, 2014 11:13 pm

Are you aware that during February-March and July-August months, Apparel companies offer huge discounts?? This is known as 'END OF SEASON SALE (EOSS)'. Let me give a brief explanation of the EOSS in apparel industry.

In Apparel business, there are two seasons- Spring/summer & Autumn/winter. Therefore, Twice a year, small and major apparel brands and retailers offer discounts on inventories of previous seasons - in July-August for summer inventory and February-March for autumn/winter inventory. The sale for summer inventory usually start anywhere between early and mid-July. This practice of apparel retail companies is known as End of Season Sale (EOSS). During the Sale period, customers get huge discounts on the stock of previous season’s merchandise. This is done with a view of pushing the stocks of previous season in order to introduce new merchandise for the new season.

During EOSS, we as customers may think that the companies are selling at a loss. But actually what happens is that these companies have already sold 'n' number of products on MRP i.e. without any discount. so on all those products, they have got huge margins. Therefore, even if they give the unsold products at the end of the season for a very low price also, they are not incurring losses. But the profit margin may be decreased due to the profits forgone.


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