New Clearance Policy?

[FlowTeamChick]

Just heard something new about how clearance is going to be handled at my store. Instead of having Clearance on a nearby end cap and getting it out of the back, anything that doesn't fit in the home location (like just before transitions) will be left in the back room and salvaged from the back when it goes salvage. Supposedly, this is because the company can take a write-off and less TM time will be used ticketing product.
We have guests who consistently shop the clearance end caps, looking for a good deal, and then of course they shop the regularly priced merch and fill up their carts. They're going to be unhappy about this.
But what I'm really interested in knowing is if this is being done at other stores? Is it a new company policy?
I don't think it's illegal, but it does strike me as being unethical, sort of "cheating" the system. Thoughts?

 

[BKop16]

That's certainly not a company change. If it was actually better off for the company to take the write off then surely they would just have us salvage everything straight off?

 

[Targen]

We've been doing this for maybe a year now? I believe it was a district decision. The problem is that we now have zero space in the backroom because of the amount of clearance/salvage sitting there. And there's so much more salvage that it takes way longer to process than if we just ticketed the clearance and let it sell.

 

[BKop16]

We've been doing this for maybe a year now? I believe it was a district decision. The problem is that we now have zero space in the backroom because of the amount of clearance/salvage sitting there. And there's so much more salvage that it takes way longer to process than if we just ticketed the clearance and let it sell.

Also a lot more clearance goes CRC to drive profit. So in the end ticketing it and letting it sell would have been just as easy. Also with the change of needing the RLTM to physically scan all CRC to a pallet it adds even more workload.

 

[HInbound]

Defo not corporate wide. Our district pulls people into Zoom meetings to explain why they have so much clearance in the back room still.

 

[FlowTeamChick]

This strikes me as one of those "if it ain't broke, don't fix it" things.
I always try to do a liability pull right after I set a transition POG - figure it's good to free up back room space, get the product out on the sales floor and let it sell down. Definitely not all things sell down (like the really expensive protein powder just recently - even at 50% clearance, it didn't move), but an awful lot does because guests love a good deal.

 

[vendordontmesswithme]

We've been doing this for maybe a year now? I believe it was a district decision. The problem is that we now have zero space in the backroom because of the amount of clearance/salvage sitting there. And there's so much more salvage that it takes way longer to process than if we just ticketed the clearance and let it sell.

Even longer now with this " Chain of Custody"