While an intern at Menards one of my personal goals was to try to sell clearance and discontinued merchandise fast. One of the ways that Menards tries to do this is by having a clearance endcap where guests can browse through the selection. There is never enough room on the endcap for all the clearance merchandise.
When something is clearances, it gets a red tag like the one shown above. While walking up and down the aisles it is difficult to see these tags. To help with this problem I used flags that can be ordered from Menards Store Supply. These red flags stick out and are very visible even at the end of the aisles.
The sale of clearance merchandise rose for the department while using the flags. When the flags were removed the sales dropped. Most customers are looking for a good deal and this helps them find them. There are some guests who will only by something if its on sale. Even if its not a good deal the customer still thinks it is because the clearance flag gives the illusion of big savings.
John Moffett's Consumer Behavior Blog 