Definition
A bargain basement is a section within a larger retail store, commonly located in the lower levels or basement, where products are sold at significantly reduced prices. Originally, this concept was introduced to sell off unsold or clearance items at discounted prices, ensuring inventory turnover and freeing up retail space for new merchandise. Over time, the term has expanded to include entire retail operations that focus solely on offering discounted goods, even if they aren’t physically located in a basement.
Examples
- Macy’s: Prominent department stores like Macy’s historically have had dedicated bargain basement sections to sell off-season or excess stock.
- TJ Maxx: As an example of a retailer that embodies the spirit of a bargain basement, TJ Maxx specializes in discounted brand-name and designer clothes, shoes, and home goods, drawing from overstock and previous seasons’ collections.
- Nordstrom Rack: This store operates as the discount division of Nordstrom, offering significant markdowns on clothing and accessories that were unsold through the main Nordstrom stores.
Frequently Asked Questions
What items are typically found in a bargain basement?
Items usually found in a bargain basement include out-of-season clothing, overstock items, discontinued products, and occasionally damaged or irregular merchandise.
How does a bargain basement benefit the main store?
A bargain basement helps the main store by clearing unsold inventory, creating space for new stock, and potentially drawing in customers who are looking for bargains, which might increase overall foot traffic and sales.
Are bargain basements only found in big department stores?
While they originally started in large department stores, the concept of the bargain basement has been adopted by many smaller retailers and specialized discount stores.
Is the quality of products in a bargain basement lower?
Not necessarily. Products are often simply end-of-season, overstocked, or discontinued lines. Some items may have minor imperfections but are generally sold at a discount because they didn’t sell at the original price point.
Can bargain basement finds be returned or exchanged?
Return policies for bargain basement items vary by store. Some retailers offer returns and exchanges, while others may have a strict final sale policy. It’s always best to check with the specific store’s return policy.
Related Terms
- Clearance Sale: A sale event where products are discounted to clear out inventory and make room for new stock.
- Outlet Store: A retail store that sells products directly from the manufacturer at a discount, often because they are excess inventory or previous season’s items.
- Markdown: A reduction in the original selling price of a product to encourage its sale.
- Overstock: Goods that have been over-ordered or not sold within the expected time frame, often sold at a discount.
- Inventory Turnover: A measure of how often inventory is sold and replaced over a period, with high turnover indicating effective inventory management.
Online References
- Investopedia: Clearance Sale
- Wikipedia: Outlet Store
- Retail Dive: Why Outlet Shopping is Still Scoring Big Wins
Suggested Books
- “Retail Analytics: The Secret Weapon” by Emmett Cox This book offers insights into various retail strategies, including the role of discounting and clearance in inventory management.
- “Why We Buy: The Science of Shopping–Updated and Revised for the Internet, the Global Consumer, and Beyond” by Paco Underhill A must-read for understanding consumer behavior, which is critical for effective retail management practices.
- “Retailing Management” by Michael Levy and Barton Weitz This textbook provides a comprehensive understanding of retail management strategies, including merchandise management and pricing tactics.
Fundamentals of Bargain Basement: Retail Management Basics Quiz
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