Post Holiday Sales

I got thinking - what's the reasoning behind post-holiday sales?

A few possibilities come to mind:

1. Clear out inventory


2. Bring shoppers back into the stores


3. Try to get shoppers who are already back in the stores returning gifts to buy something else

All of those are legitimate strategies. I came up with another reason that made me feel uncomfortable. I returned an item to J. Crew without a receipt, and since the item was then on sale, I had to get a gift card for the lower amount.

My gut tells me that the profit margins for those items which are returned without receipts are some of the most profitable transactions that retailers experience these days. No wait, I take that back. Gifts cards. Gift cards must be the most profitable. Its like free money!