The Difference Between Liquidation Stock and Clearance Stock

Liquidation stock and clearance stock are both types of discounted merchandise, but there are some key differences between the two.

Liquidation stock refers to merchandise that is being sold off quickly in order to raise cash, usually because the company that owns the stock is in financial trouble or is going out of business. This merchandise is often sold at a significant discount from its original retail price, and the goal is to sell off as much of it as possible in a short amount of time. The quality of liquidation stock can vary widely, as it may include damaged or defective items.

Clearance stock, on the other hand, refers to merchandise that is being sold off in order to make room for new inventory. This merchandise is typically discounted to make it more appealing to customers and to encourage them to buy it quickly. The quality of clearance stock is usually higher than that of liquidation stock, as it is still being sold by a going concern and is often just last season’s or discontinued items.

In summary, the key difference between liquidation stock and clearance stock is the reason for the discount. Liquidation stock is sold to raise cash quickly, while clearance stock is sold to make room for new inventory. The quality of the merchandise can also differ, with clearance stock generally being of higher quality than liquidation stock.