Lululemon chooses to be upfront with its customers about the reason behind the discounts they are giving with a clearance collection titled ‘We Made Too Much’. In order to clear slow-moving stocks, Lululemon runs a clearance sale that gives discounts to off-season items that they might have overestimated the demand for. This is how Lululemon makes use of a clearance sale:
As seen above, Lululemon's clearance collection contains discounted items with a compare-at price listed beside the selling price. This lets customers know the amount of discount they will be receiving hence increasing the perceived value of the products and making it more likely for customers to make purchases.
Overall, having a clearance collection where all products on sale can be easily located contributes to good website navigation, which is a make-or-break factor for a successful online store. After all, a frictionless buying experience leads to an increased conversion rate and, therefore, more profitable sales.