It’s Outta Here

Mollo suggests you take a cost reduction on the goods being transferred from your catalog unit to your off-price retail division. “The store should buy the goods from the catalog division at, say, 65 percent of the company’s cost. This is how, as a company, you can determine which division created the overstock in the first place,” Mollo says. “This is how you hold your people accountable. Your catalog merchants can’t just say: ‘Oh, there’s no problem if we can’t sell this item I’m buying. We can always just send it to our retail stores.’”