Which of the following is an objective of retail markdowns?

Encouraging more purchases of less popular items is an important objective of retail markdowns because markdowns serve as a strategic tool to stimulate sales on products that may not be moving as quickly as desired. By lowering prices on these items, retailers aim to attract customers who may be price-sensitive or looking for bargains, thus increasing the likelihood of selling through this inventory. This can help prevent overstock situations, reduce holding costs, and improve overall inventory efficiency.

Markdowns can also serve to engage customers who are looking for value, helping to clear out seasonal items or products that have not sold well due to various factors such as changing trends, excess supply, or new product introductions. By targeting these less popular items with markdowns, retailers can shift focus and resources toward more popular or profitable products, enhancing overall business performance.

This approach allows for a more agile inventory management strategy, where retailers can respond quickly to market demands and consumer behaviors, ensuring that they maintain a balanced and appealing selection of merchandise.