It’s the process of selling off a company’s inventory a big discount so as to generate cash. When a retail shop is getting ready to liquidate, it follows several procedures. These steps start with discarding any inventory that is expired and damaged. The next step is to do the essential paperwork. A written inventory of liquidating items is created with pictures and descriptions. The money that retail liquidation provides can then be again invested to purchase new products and services or it can be put towards sales and advertising strategies.