What is NOT a benefit of markdowns for a retailer?
A)Markdowns generate cash flow to pay for new merchandise.
B)It's a way to make room for new merchandise.
C)It rids the store of obsolete merchandise.
D)It increases customer traffic.
E)It's a way to gain more gross margin percent.

Question

Quizplus · Accepted Answer

Markdowns reduce the profit percent on the merchandise,thus lessening the gross margin percent.

What Is NOT a Benefit of Markdowns for a Retailer