Customer Returns Merchandise consists of items that are not to be sold in our stores because they may have been previously purchased and returned in a condition that is not suitable for resale or otherwise not first quality.
The condition and the mix of goods of the merchandise will vary within any given lot. The condition will range from “almost first quality” (i.e., returned by a customer due to preference or out of package) to “slightly distressed” (e.g., broken zipper, missing button, make-up stains, wrinkles or slightly used). Lots also may contain an approximate percentage of highly distressed (non-repairable) merchandise, but the amount of goods per lot in each condition classification will vary by each lot, as well as the amount of each product category. For example: one may receive a lot that only contains 10% damages and then may receive the next lot that contains 95% damages. Since the mix of salable product per lot is not known, there is always a risk factor to be considered.
We cannot and do not provide any assurances as to the percentage of distressed merchandise in any given lot, especially due to the subjective nature of the goods. If your preference is for first quality merchandise, this program may not suit your business needs.
Store Stock Merchandise
Store Stock consists of first quality merchandise that has exceeded store aging standard and must be removed from the selling floor (Clearance racks) to accommodate new merchandise. Store Stock lots can contain a small percentage of distressed merchandise generally shopworn from fitting room damage or from clearance tables and not to exceed 5%.
Due to the fact that the stores do not return goods at the same time, Store Stock lots generally will contain a wide assortment of merchandise. Store Stock merchandise is sorted by merchandise category and sold in lots that normally range from 1 to 3 pallets.
Seasonal Overstock merchandise consists of first quality store floor overstock that the buyer designates to be sold at the end of the store selling season.
At the end of a selling season, all designated merchandise is removed from the selling floor, boxed and forwarded to a Central Return Center (e.g., all winter coats are removed from the selling floor mid-spring to make room in the stores for swimwear).
The Central Return Centers palletize the shipments by category and lot number.