Inventory Management: A Circle of One

After collecting returns from stores across the country, we use most of this inventory to supply direct-to-consumer discount programs via our outlet store, sales fliers and the web — all with a favorable margin. We also sell some of the product to off-price marketers for a smaller margin. Off-price products are often purchased by people unfamiliar with our products. These new customers then can begin to search for our other products at retailers that offer large, current assortments.