How to get rid of dead stock at the smallest discount
The short answer
To get rid of dead stock without a deep markdown, start with the customers most likely to want it: recent buyers of the same category and price band. Offer a small incentive to that segment first, measure how much clears in a week, and step the discount up only as far as needed to reach your dollar target.
Why it matters
Clearing aged stock with a storewide markdown gives the biggest discount to everyone, including customers who would have paid more. Targeting and stepping the discount clears the same dollar value with less margin given away, and frees cash and space for new ranges.
The question to ask
Copy this into Lexi as written.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for an apparel retailer clearing $150,000 at cost of last season's outerwear in six weeks. It stages offers by customer fit.
- Week 1: 6,200 recent outerwear buyers with a high full-price share get 15% off.
- Week 2: if under 40% has cleared, the offer extends to 14,000 category buyers.
- Week 4: the offer rises to 25% if under 70% has cleared.
- Final week: storewide 40% off for what remains.
What the data shows
The first two weeks clear an estimated $78,000 at 15% off, and week four takes the total to about $122,000.
What it means
Only about $28,000 reaches the storewide markdown.
What to do
Run the stages and check the clearance rate before each step.
Want me to push each stage's segment to Klaviyo or Meta?
Frequently asked questions
How do I plan a clearance sale for aged stock?
Set a dollar target and deadline, rank customers by how likely they are to want the stock, and plan stages that start with a small discount for the best-fit group. Check sell-through each week, and widen the audience or deepen the discount only when you fall behind the target.
Why not start with a deep markdown to clear stock fast?
A deep markdown clears quickly but gives the full discount on every unit, including those that would have sold at a smaller one. Starting small with likely buyers and stepping up leaves the deepest discount for the last, hardest units, which keeps far more margin.
What makes a good clearance strategy in retail?
It treats clearance as a targeted sale, starting with customers who already buy the category and price point. It sets a dollar target and timeline, steps discounts in stages and measures margin given away. It also feeds back into buying, so the same lines are bought shallower next season.