What is 'markdown money' used for in retail?

Markdown money refers to funds allocated within a retail environment specifically to strategically reduce the prices of products that are not selling well. The primary purpose of markdowns is to stimulate sales by making items more attractive to potential buyers, thereby clearing out inventory that may otherwise linger unsold. This tactic helps in managing financial resources effectively and improving cash flow, as well as allowing the retailer to make room for new merchandise.

The incorrect choice suggesting that markdown money signifies which items will sell well does not accurately capture the essence of this retail strategy, which is focused on adjusting pricing to boost sales rather than predicting item performance.