Keeps prices up. They'd be overstocked and would be forced to offer sales more often. If they have sales more often then people will wait for them and they won't make any money and eventually go out of business.
If they donated the clothes the same thing would happen. The clothes would eventually end up in a thrift store and completely undercut the items sold in the main stores.
When you limit supply, you can keep prices higher. Nothing wrong with that, especially when it's the retail clothing industry and you have a million other options to choose from if you don't want to pay the higher prices. For you cheapskates, I suggest Faded Glory
If they donated the clothes the same thing would happen. The clothes would eventually end up in a thrift store and completely undercut the items sold in the main stores.
When you limit supply, you can keep prices higher. Nothing wrong with that, especially when it's the retail clothing industry and you have a million other options to choose from if you don't want to pay the higher prices. For you cheapskates, I suggest Faded Glory
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat