What does 'seasonal inventory' refer to in retail?

Seasonal inventory refers to items that retailers stock specifically to meet the expected demand during certain times of the year, such as holidays or seasonal events. These products are tailored to the preferences and purchasing behaviors of consumers during those particular periods, such as holiday decorations during Christmas, swimsuits in summer, or school supplies before the back-to-school rush.

This strategy allows retailers to maximize profitability by aligning their inventory with peak shopping times and trends, thus ensuring that they have the right products available when customers are most likely to buy them. The focus is on catering to temporary spikes in demand rather than maintaining a year-round selection of these items.

In contrast, the other options lack this focus on fulfilling seasonal consumer needs: they either describe continuous availability, luxury items out of season, or general discounting practices, which do not specifically relate to the concept of seasonal inventory.