About 10% of the merchandise is mark-down goods from the full-line stores while the remaining 90% is bought specifically for the Rack store including some vendor closeouts.

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Its skill in understanding fashion trends and the right level of mark-up on merchandise, as well as the proper level of inventory, and the intelligent staffing of stores makes the all the difference.

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One strategy some retailers have taken is to buy lower quality merchandise at a very low price point and then mark it down slightly, she says.

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Amazon claims they will not ask for the traditional mark-down allowances from manufacturers nor return privilege for the merchandise from the suppliers.

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Mark-up to mark-down is a pricing strategy whereby retailers set regular merchandise prices high and then turn around to offer customers discounts.

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