Friday, November 14, 2008

Signs of the Economic Apocalypse, Part 4

An Old Navy store in Redwood City, Calif. has girls' clothing on clearance at the moment for 75% off, plus a "friends and family" discount of 30%, bringing the total discount to 82.5%.

Maybe soon they will start just weighing the clothes and pricing that way as is done with salvage clothing sent overseas.

These kinds of discounts also offer the possibility of some interesting tax arbitrage as charitable donations of goods. Perhaps Old Navy, like most publicly traded companies, would now be considered an unwilling seller, meaning that the fair market value price could be substantially higher.

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