if we as a company are not closing then why are we sending our good (not just old product, not 991 not vom) to the nearby stores that are closing. Looks like a quite way to liquidate without making it look bad to the public.
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Christmas trees that weren't selling at $75 pre-liquidation were marked up to $125 when liquidation started, and they sold like hotcakes.
It is just cash flow on npi. The liquidator buys it and then sells it through the closing Sears and/or Kmart store.
@nqr - As an associate who has been through a store liquidation I can attest that your observations are spot on. Liquidation pricing doesn't even begin to match regular sale pricing until about halfway through the liquidation process. By then all the desirable merchandise is long gone and only the hard to sell merchandise remains. I was absolutely flabbergasted by the lines of customers with overflowing carts in hardlines that thought 10% off was a great deal. One glaring example was a tool accessory kit, regular price $99.99, regular sale price $29.99 to $49.99. We sold all 100+ of them at the liquidation price of $89.99! Funnier yet, I lost count of the number of customers that lamented that they missed out on that deal when I told them, "Sorry, sold out."
Cash flow to keep the company going just a little longer
Liquidation sales always draw a massive crowd. The liquidation 'sale' generally isn't much of a sale at the beginning of the process. Some items are actually more expensive than during normal sales. Feeding these stores with extra inventory is a way to make more profit from the store during liquidation because people will buy just about anything and most don't realize they're buying items that aren't actually on much of a sale.