For example, with Wal-Mart clearing out most of their LOTR and Hobbit stuff, is this the end of it on the shelves at Wal-Mart, or do they bring back the sets at the Christmas season?

 

It seemed to me like some the LOTR/Star Wars sets were discounted heavily after Christmas 2012, and then the same sets appeared back on the shelf in early spring, and are again being discounted now.

 

How/Why does this method work as a retailer?

I would guess that the sets that are on clearance now were on the shelves last Christmas. Now the big box stores are clearing the shelves for sets that will be new to this years Christmas season. I'm seeing more Lone Ranger sets back on the shelves.

Sometimes retailers will clearance out random stuff to give them some room to breathe before a store reset. I bought a helms deep last year for $82 at target after Christmas and that target and they carried it later through 2013

So, is it rational to assume that the stuff being cleared out now will not be available at the same location during Christmas?

So, is it rational to assume that the stuff being cleared out now will not be available at the same location during Christmas?

Certain sets are retiring right now, which explains their clearance, but for many other sets, they are clearanced just to get it out of the store. I personally don't understand why they would clearance items, only to re-stock that item.

 

There are also the sets that you will never see clearanced and be picked up at full retail, never to be seen again, so the clearance game does work both ways.

I have found there is sometimes a disconnect between the sales at some stores and the person doing the purchasing or ordering for them.  I have seen corporate purchasers push product out to stores in order to meet overall sales targets or to fulfil contractual obligations with suppliers/manufacturers.  Some stores then discount product in order to turn it over, yet more still gets sent to them.  Sometimes this makes sense from an overall company viewpoint, but others it's just a lack of systems communicating with each other.

So, is it rational to assume that the stuff being cleared out now will not be available at the same location during Christmas?

I'd say this is about 90% true.