What impact does a high turnover rate typically have on markdown levels?

A high turnover rate in retail, including golf operations, usually indicates that there is frequent change in inventory due to new stock coming in and older stock being sold off. When turnover is high, it often means that products are being sold quickly, which can lead to a decrease in the need to markdown items.

High turnover allows for better inventory management; items that do not sell quickly can be identified and removed from the sales floor before they require significant markdowns. Retailers prefer to keep fresher stock, ensuring that they are not discounting their items heavily, which helps in maintaining profit margins.

In contrast to the chosen answer, if turnover were low, items would linger longer in inventory, leading potentially to deeper discounts to clear out unsold merchandise. Therefore, the correlation here is that with a high turnover rate, markdown levels tend to be lower, as products are effectively managed and sold promptly.