Closeouts: Closeouts is a classification of surplus retail inventories. This class of retail product is new merchandise. Closeouts are first sold in the retail store at a discount. Closeouts are sold at store level in clearance sales events. The term closeouts is to closeout said product from inventory (close to zero inventory). The closeouts that were not sold at A clearance sales events will be sent the regional return center for liquidation. This is beginning of reverse logistics retail supply chain.

   Closeouts are similar to overstocks. Overstocks are used as a tool in the retail supply-chain. Overstocks is merchandise intentionally ordered over sales projections to fill in gaps in the supply chain for product lines that have a psuedo-experiation date (seasonal or holiday)

 

At a certain date in the calendar year seasonal merchandise needs to be closed out of inventory. The seasonal merchandise changes its classification from store stock to liquidation inventory. Usually the store will mark down the merchandise for a closeout sale.  Then the remaining items from the closeout product line will be sent to the regional return center. When the closeouts are received at the return center they will be put into pallet lots and assigned to a Bill Of Lading .

 The Bill of Lading or "B.L.'s" will be sold to Jobbers or companies with salvage contracts with the retailer.