The Short-term and Long-term Impact of Clearance Sale at Yuri USA, Inc.

Koji Tanaka was the former president of Yuri, USA, Inc., who now served as an adviser to the Yuri management team. He provided expertise on financial and marketing matters to Ai Suzuki who took over his position a few years ago. To clear the shelves for new inventory Ai held a clearance sale, but Koji was not sure that a 70% clearance sale was the best approach. Although the clearance sale decision had been made, Koji believed the business consequences would be problematic. This critical incident covers how the short-term financial and marketing decisions that were made concerning the Yuri clearance sale were likely to influence the long-term financial and marketing opportunities for Yuri.