A substantial share of unsold merchandise never appears on a clearance rack. It is sold in bulk from the distribution center, and both parties prefer it that way.
Retail clearance consumes expensive space
Marking down goods on the sales floor uses fixtures, staff attention and square footage that could hold current-season merchandise selling at full margin.
The comparison a retailer makes is not between clearance revenue and nothing, but between clearance revenue and the sales the same space would otherwise generate.
Once that comparison turns negative, moving the goods out in bulk is the better decision even at a much lower price per unit.
Brands buy the right to control where goods surface
Suppliers care where their products appear, since a discounted display next to full-price stock damages the price position they maintain elsewhere.
Contracts often restrict how and where excess can be sold, requiring labels to be removed, restricting geography or requiring the brand to have first refusal.
Selling to a jobber who redistributes into off-price and export channels satisfies those restrictions in a way that a public markdown does not.
Jobbers price on the load, not the item
Secondary-market buyers quote a percentage of wholesale cost for a whole lot, based on category, condition and how quickly they believe they can move it.
They take the goods as they are, without counts verified item by item, which is what makes the transaction fast enough to be worth the discount.
Their margin comes from knowing which downstream buyers want which categories, a knowledge business rather than a retail one.
Destruction is sometimes chosen instead
Goods with safety issues, counterfeit risk, licensing restrictions or trademark exposure may be destroyed rather than sold, and disposal is documented.
Some jurisdictions have moved to restrict destruction of unsold goods, and reputational pressure has pushed brands toward donation or recycling alternatives.
Tax treatment of donated inventory affects that decision as well, and the rules are specific enough that companies consult tax counsel before setting policy.
The pattern shapes what shoppers can find
Because much surplus leaves through bulk channels, the clearance section of a store is a curated remainder rather than the full set of unsold goods.
The rest reappears in off-price chains, discount marketplaces and export markets, often months later and without the original branding intact.
A shopper looking for a specific discontinued item is therefore usually searching the secondary market, not the original retailer's clearance shelf.