Closeout (sale)

However, closures are often from companies that cannot sell their inventory, inventors whose ideas were not marketable, and businesses needing fast-incoming cashflow to pay debts such as payroll or rent.

Big Lots is a well-known closeout retail chain in the United States, but other stores such as TJ Maxx, Ross Dress For Less, Marshalls, and Value City are also common and specialize more in clothing and housewares.

Particularly in Canada and the United Kingdom, Boxing Day sales draw large crowds of shoppers seeking after-Christmas deals.

[citation needed] Some customers take note of when specific retailers normally mark down merchandise further, showing up at the store on the very first day for the best selection.

[3][4] Often, certain inventory which would be considered a true bargain in a closeout, such as video game consoles, games and first-party accessories are contractually disallowed from any sort of closeout discount by manufacturers and are often taken back for sale elsewhere at their intended prices.

Stores typically place merchandise on a "clearance rack" and periodically reduce the price until someone buys it, as in a Dutch auction.