Checklist template

Clearance center and outlet operations for furniture retailers

A ready-to-use checklist with 109 items in 6 sections, covering Product condition, Tagging, Pricing, Floor layout, As-is disclosure, Sell-through. Use it as-is in InspectLoop, or adapt it to your own standards in minutes.

  • 6 Sections
  • 109 Items
  • 89 Yes / No checks
  • 6 Scored ratings
  • 119 Points

Use this template How audits work

1. Product condition 18 items

  1. Every piece received into clearance is inspected before it goes on the floor Yes / No 1 pt
  2. Each piece is given a condition grade (discontinued new, floor sample, customer return, scratch and dent, repaired) Yes / No 1 pt
  3. The condition grade is recorded in the inventory system Yes / No 1 pt
  4. Chairs, sofas and beds on the floor were sat on or pushed during the visit and showed no loose frames Yes / No 1 pt
  5. No piece with a broken frame, exposed springs or sharp edges is offered for sale Yes / No 1 pt
  6. Upholstery returned from a customer's home is cleaned before it goes on the floor Yes / No 1 pt
  7. Customer returns are checked for odors, pet hair and signs of pests at intake Yes / No 1 pt
  8. Returned mattresses are offered only where local regulation allows, with the label it requires Yes / No 1 pt
  9. Each motor of power furniture is tested at intake Yes / No 1 pt
  10. Repairs and touch-ups that raise the selling price are done before the piece is priced Yes / No 1 pt
  11. Missing shelves, leaves, legs, cushions and hardware are identified at intake Yes / No 1 pt
  12. Pieces that no longer match their set (dye lot, finish) are identified at intake Yes / No 1 pt
  13. The product recall list is checked before a piece is released for sale Yes / No 1 pt
  14. Each piece can be traced to its source (store transfer, customer return number, warehouse damage report) Yes / No 1 pt
  15. Pieces on the floor longer than 30 days were re-checked for new wear Yes / No 1 pt
  16. Pieces on the clearance floor Number
  17. Pieces in the back room waiting for inspection or repair Number
  18. Condition of the pieces offered for sale Rating
    • Sound, clean and graded 5 pts
    • Sound but some ungraded or dirty 3 pts
    • Unsafe or unsaleable pieces on the floor 1 pt

2. Tagging 19 items

  1. Every piece carries a clearance tag (check 25 pieces) Yes / No 1 pt
  2. Each tag has a unique piece number that ties to the inventory record Yes / No 1 pt
  3. The tag shows the original price Yes / No 1 pt
  4. The tag shows the clearance price Yes / No 1 pt
  5. The tag shows the date the piece went on the clearance floor, in clear or in code Yes / No 1 pt
  6. The tag lists the flaws of that piece (for example "scratch on left side panel") Yes / No 1 pt
  7. The tag lists any missing parts Yes / No 1 pt
  8. The tag states what is included (for example "table only, no chairs") Yes / No 1 pt
  9. The tag states "As-is, final sale" Yes / No 1 pt
  10. Tags are fastened with a cable tie or sealed sleeve so that they cannot be switched between pieces Yes / No 1 pt
  11. The description on the tag matched the system record on the 10 pieces scanned Yes / No 1 pt
  12. Tags of pieces repaired after intake state the repair done (for example "leg replaced") Yes / No 1 pt
  13. Sold pieces are moved to the hold area within one business day Yes / No 1 pt
  14. Changes written on a tag by hand are initialed by a manager Yes / No 1 pt
  15. Hold tags show an expiry date within the hold period set by company policy Yes / No 1 pt
  16. Each piece of a set that must be sold together is tagged as part of the set Yes / No 1 pt
  17. Pieces without a tag in the sample of 25 Number
  18. Tags that did not match the system in the sample of 10 Number
  19. Tagging of clearance pieces Rating
    • Complete and specific to each piece 5 pts
    • Priced but flaws or dates missing 3 pts
    • Untagged or mismatched pieces 1 pt

3. Pricing 18 items

  1. Clearance prices are set from the company pricing guide by condition grade Yes / No 1 pt
  2. Only a manager can enter or change a clearance price in the system Yes / No 1 pt
  3. The markdown schedule by age on the floor is applied Yes / No 1 pt
  4. Pieces due for a further markdown this week have been re-tagged Yes / No 1 pt
  5. Negotiated discounts stay within the authority limit of the person who granted them Yes / No 1 pt
  6. Negotiated discounts are recorded with a reason code Yes / No 1 pt
  7. No piece is sold below the floor price set by company policy without district approval Yes / No 1 pt
  8. The original price on 5 tags sampled matches the regular price recorded in the system for that item Yes / No 1 pt
  9. 5 pieces rung at the register during the visit scanned at the tag price Yes / No 1 pt
  10. Bundle prices for several pieces are written on the sales order line by line Yes / No 1 pt
  11. Employee purchases of clearance pieces are approved by a manager other than the buyer Yes / No 1 pt
  12. Sales to resellers or liquidators follow the company's bulk sale procedure Yes / No 1 pt
  13. Protection plans are not sold on as-is pieces the plan provider excludes Yes / No 1 pt
  14. Delivery charges for clearance purchases are posted at the register Yes / No 1 pt
  15. Signs state whether promotional financing applies to clearance purchases Yes / No 1 pt
  16. Average discount from the original price on 10 pieces sampled (%) Number
  17. Gross margin on clearance sales last month (%) Number
  18. Pricing discipline in the clearance center Rating
    • Guide and markdown schedule followed 5 pts
    • Guide followed but markdowns late 3 pts
    • Prices set case by case without a record 1 pt

4. Floor layout 18 items

  1. Pieces are grouped by category (sofas, recliners, bedroom, dining, mattresses, accent pieces) Yes / No 1 pt
  2. Aisles are wide enough for a furniture dolly to pass with customers present Yes / No 1 pt
  3. Customers can walk around each large piece to see its sides Yes / No 1 pt
  4. The damaged side of a piece is not hidden against a wall or another piece Yes / No 1 pt
  5. Nothing is stacked on upholstery or on finished table tops Yes / No 1 pt
  6. New arrivals are placed in a marked area near the entrance Yes / No 1 pt
  7. The oldest pieces are placed in the positions with the most traffic Yes / No 1 pt
  8. Pieces from the same set or collection are displayed together Yes / No 1 pt
  9. Mattresses lie on foundations or racks, not leaning against a wall Yes / No 1 pt
  10. Rugs are hung or stacked flat with their tags visible Yes / No 1 pt
  11. Cartoned closeout stock is stacked stable, with one piece out of the carton as a sample Yes / No 1 pt
  12. The hold area for sold pieces is roped off or out of customers' reach Yes / No 1 pt
  13. Category signs can be read from the entrance Yes / No 1 pt
  14. Every area of the floor is lit well enough to see finish flaws Yes / No 1 pt
  15. Fire exits are not blocked by merchandise Yes / No 1 pt
  16. Electrical panels are not blocked by merchandise Yes / No 1 pt
  17. Tape measures are available to customers Yes / No 1 pt
  18. Layout of the clearance floor Rating
    • Organized and easy to shop 5 pts
    • Grouped but crowded 3 pts
    • Pieces piled with no order 1 pt

5. As-is disclosure 18 items

  1. A sign at the entrance states that clearance merchandise is sold as-is and that sales are final Yes / No 1 pt
  2. The same statement is posted at the register Yes / No 1 pt
  3. The sales associate walks the customer around the piece and points out the flaws on the tag before writing the sale Yes / No 1 pt
  4. The receipt prints the as-is and final sale terms Yes / No 1 pt
  5. The customer signs an as-is acknowledgment that lists the flaws of the piece Yes / No 1 pt
  6. A photo of the piece taken at the time of sale is attached to the order Yes / No 1 pt
  7. The customer is told in writing whether any manufacturer's warranty remains Yes / No 1 pt
  8. The customer is told that missing parts will not be supplied Yes / No 1 pt
  9. Functions that do not work (a motor, a light, a lock) are written on the receipt Yes / No 1 pt
  10. The customer is told the pickup deadline for the piece Yes / No 1 pt
  11. The customer is advised to measure the piece because it cannot be returned if it does not fit Yes / No 1 pt
  12. Customers who buy delivery are told the crew cannot take the piece back for flaws already disclosed Yes / No 1 pt
  13. The acknowledgment in use is the current version issued by head office Yes / No 1 pt
  14. Sales associates asked could explain what "as-is" means for returns and warranty Yes / No 1 pt
  15. Return requests on as-is sales are logged with the decision taken Yes / No 1 pt
  16. Sales without a signed acknowledgment among the last 20 as-is sales reviewed Number
  17. Return requests or complaints on as-is sales last month Number
  18. Disclosure of as-is conditions to customers Rating
    • Shown, written and signed on every sale 5 pts
    • Signed but flaws not listed 3 pts
    • Verbal only 1 pt

6. Sell-through 18 items

  1. The aging report by piece is reviewed weekly by the manager Yes / No 1 pt
  2. Each piece older than the age set by company policy has a decision recorded: markdown, donation, liquidation or disposal Yes / No 1 pt
  3. Donations are supported by a receipt from the charity Yes / No 1 pt
  4. Disposals are approved by a manager before the piece leaves the building Yes / No 1 pt
  5. Disposed pieces are written off in the inventory system Yes / No 1 pt
  6. Transfers from stores are scheduled so that the back room does not overflow Yes / No 1 pt
  7. Transfers received this month reached the floor within the time set by company policy Yes / No 1 pt
  8. Buyers of sold pieces past the pickup deadline have been called Yes / No 1 pt
  9. New arrivals are announced to customers by the channel the company uses (email list, social media, store sign) Yes / No 1 pt
  10. Clearance pieces are counted one by one on the company schedule Yes / No 1 pt
  11. Date of the last piece count Date
  12. Differences from the last count were investigated and adjusted with a manager's approval Yes / No 1 pt
  13. Pieces on the floor for more than 90 days Number
  14. Pieces sold last week Number
  15. Pieces received last week Number
  16. Name of the clearance center manager Short text
  17. Overall clearance center operations Rating
    • Pieces graded, tagged, disclosed and marked down on schedule 5 pts
    • Tagged and disclosed but aged pieces building up 3 pts
    • Untagged pieces or undisclosed flaws found 1 pt
  18. Corrective actions required Comments

About this template

This checklist is part of the InspectLoop template library. Yes / No checks score 1 point when met; ratings score the points shown for each option. The overall score is the percentage of points earned, with N/A answers excluded. In InspectLoop you can add photos, assign corrective actions, require sign-off and compare results across sites.

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