Recent shopping outings have impressed upon MDM the significant reduction in clearance items in the major department store chains.  This spurred a cursory investigation by MDM in order to assess  the after Christmas or Holiday Sales for this year.

MDM has noticed that sales after the holidays have decreased in the last number of years.  Last year the number of  real bargains or clearance items was significantly less in quantity and depth of savings from 2004.  What has led to this decline?  Several aspects are in play regarding this answer.

• The department stores have put in place tighter inventory control.  Simply put, the computers have limited the on-hand inventory to reduce the number of items on clearance after the holidays.  This often is the reason for shortages.  Additionally, manufacturing has implemented tighter production controls which is a double-edge sword since shortages represent lost sales. 
• Department stores are selling overstocks in bulk  to online auction stores and other merchandisers such as Goodwill which buys lots from Target for resale.
• A new mid-level entrepreneur has been created especially in electronics, individuals buying electronics at sale prices or from clearance and then posting the item for sale at online auctions.  Since shipping and handling are paid for by the bidder, the seller prices the merchandise to allow for a healthy profit above his/her cost– the store’s clearance or sale price. 
• The increased purchasing price of the euro has enabled europeans and canadians to broker shopping trips to the United States to purchase USA products at a substantial savings.  The Mall of America has estimated 2 million shoppers this holiday season.  Many people are making this an annual shopping pilgrimage.  Therefore, competition for limited numbers of certain items has expanded globally.
• Fashion designers have dedicated outlets to handle overstocks, and markdowns are not as great as instore clearance sales unless you shop the clearance racks in the outlet stores.  But take note, merchandise on these racks are usually not from the current season but from the previous season or seasons.   

MDM recommends taking this into account as you are shopping this season.    On major gifts if you find a bargain, MDM suggests not waiting for a better price–it may not be there when you want it!

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