#062: Ask Cathy: Do Clearance Sales Really Work - Or Am I Just Giving Away Profit?

January can be one of the most challenging months for retailers; slower traffic, softer sales, and inventory left over from Q4 that simply didn’t move. In this episode Cathy answers real questions from the retail community about the January slump, aging inventory, and the fear many store owners have around running clearance sales.

Cathy breaks down why the January slowdown isn’t actually a seasonal problem, but an inventory and strategy issue. She explains how trapped cash in stale inventory quietly erodes profit and momentum and why a strategic, well-planned clearance sale can increase future margins without devaluing a brand.

This episode offers clarity, mindset shifts, and practical guidance for retailers who want to regain cash flow, energy, and confidence heading into Q1.

What You’ll Learn in This Episode

•  Why the January slump is an inventory and strategy issue, not a time-of-year problem
•  How trapped cash in old inventory limits buying power and growth
• Why clearance sales don’t damage brands; inconsistent, unplanned sales do
• Why profit is lost when inventory sits, not when it’s strategically marked down

Key Takeaways:

• [02:21] Understanding the January Sales Slump
• [03:18] Effective Clearance Sales Strategies
• [08:14] Optimal Inventory to Sales Ratios
• [09:40] The Importance of Inventory Turnover

Your Millie Moment:

• Review current inventory and identify products that are no longer serving the business
• Create a clear and intentional clearance strategy with a defined timeline
• Focus on extracting trapped cash to fund future profits

Resources and Links:

• Clearance Sale Secrets Guide
• Want expert guidance on Clearance Sale? Apply for your free Gameplan Call, where we’ll identify your growth opportunities and map out the most profitable next steps to elevate your visibility, attract the right customers, and scale with confidence.
• Want a behind-the-scenes look at how our top clients grow profit without burning out? Our free training, Beyond Busy: 3 Shifts to Reclaim Your Time and Boost Store Income, walks you through the exact method we use in our Profit Club, focusing on your role as CEO, CIO, and CFO to grow a business that’s both profitable and sustainable.
• Follow us on social media for more updates! Facebook / Instagram

Join the community with ambitious store owners in our Richer Retailer Facebook Group

💚 Remember: January struggles are not a sign of failure, they are feedback. When retailers release inventory that is holding cash hostage, they create space for fresh products, renewed energy, and forward momentum. Strategy, clarity, and action, not luck are what move businesses forward. Retailers are reminded that they are capable, supported, and never alone on this journey.