How do I plan year-end clearance discounts for beauty inventory?

Question

As a beauty retailer, I'm looking to optimize my year-end inventory clearance strategy. I have seasonal and slightly older beauty products that need to be cleared out before the new year to make room for fresh inventory and minimize storage costs. I want to create a discount approach that not only moves stock efficiently but also maintains my brand's perceived value and attracts customers during a competitive shopping period. What are the most strategic ways to structure year-end clearance discounts for beauty products?

Muhammed Tüfekyapan · Accepted Answer

Planning Year-End Clearance Discounts for Beauty Inventory
Year-end clearance in the beauty industry serves a dual purpose: freeing up warehouse space for new product lines while recapturing revenue on slow-moving inventory before January. The challenge is doing this without training your best customers to expect deep discounts every December.

Year-End Clearance Planning Timeline

When
      Action
      Discount Depth

Early November
      Audit slow-moving SKUs, define clearance list
      -

Early December
      Soft launch, email to past customers
      20-25% off

Dec 15-22
      Broader promotion, social push
      30-40% off

Dec 26-31
      Final clearance push, countdown
      Up to 50% off

Inventory Segmentation Strategy
Not all products should be treated equally in clearance:

Expiring products (12-18 month shelf life) - prioritize deepest discounts; liquidating beats waste
  Color-seasonal items (holiday shades) - won't sell well post-January; 40-50% acceptable
  Core SKUs - avoid including unless overstock is severe; damages price anchoring
  New arrivals - never include; clearance signals low quality for new products

Protecting Margins During Clearance
The risk with year-end clearance is your loyal, repeat customers claiming deep discounts on items they would have bought anyway. Growth Suite's behavioral targeting addresses this: it identifies visitors who are genuinely on the fence (low engagement signals, first visit, long dwell time without adding to cart) and shows the clearance offer only to them. Repeat buyers who add to cart quickly don't get the extra push - protecting margin on your best customers.
Use Growth Suite's Scheduled Campaigns to automate the markdown progression - set your Dec 1, Dec 15, and Dec 26 discount tiers in advance so execution is hands-free during a busy holiday period.

Planning Tip
  Use your January 1 new arrivals announcement as the "reason why" clearance must end - "We're clearing space for new [season] collection" - this frames the urgency naturally and protects you from having to extend the sale.

How do I plan year-end clearance discounts for beauty inventory?

TL;DR - Quick Answer

Complete Expert Analysis

Planning Year-End Clearance Discounts for Beauty Inventory

Year-End Clearance Planning Timeline

Inventory Segmentation Strategy

Protecting Margins During Clearance

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Muhammed Tüfekyapan

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Use Cases

When	Action	Discount Depth
Early November	Audit slow-moving SKUs, define clearance list	-
Early December	Soft launch, email to past customers	20-25% off
Dec 15-22	Broader promotion, social push	30-40% off
Dec 26-31	Final clearance push, countdown	Up to 50% off