Summary
In this article, this retailer is willing to have incredible discounts for customers because of competition. As their competitors are lowering the prices and giving out discounts, they must do the same. Another reason that they are willing to sell at this rate is that they want to clear out their inventory of winter and fall merchandise before having to restock. Making exceptional sales and crazy discounts hoping that they would be able to lure customers in their store, so they can clear out the older merchandise, and make a profit before ordering new selections.
Connection
Chapter 11 is about how a store is able to calculate the amount merchandise sold and how much merchandise inventory is left, using the equation: cost of beginning inventory + cost of merchandise purchased- cost of merchandise sold= cost of ending inventory. If any retailer is able to easily clear out their inventory space before purchasing new merchandise it would make accounting much easier, but the retailer itself would find it hard to continue its business. Making deals for the consumers is great and clearing the inventory sounds simple, but how much time would it take before another season arrives and other stores have already filled in their order forms for new merchandise. All in one I think that clearing out the inventory is a little harder than it sounds.
Reflection
Lowering the price for the consumers is awesome. Having the sales extend just benefit the public. At times when I see stores having discounts at incredible rates make me wonder, how much they actually earn if the product was at its original price. Keeping in mind that retailers still earn profit to cover their expenses, therefore the original price would have been making larger profit even though it ranges from a longer period. After reading the article, I find that having more competitors for the same retailing, business would benefit the consumer, in the way that we are able to have better service and greater selection of stores.
http://www.vancouversun.com/life/wear+retailers+still+offer+Boxing+bargains/1124425/story.html
Jessica
