Automatic Bargain Basement

The Automatic Bargain Basement was a unique store concept pioneered by Filene's, a department store in Boston, Massachusetts. Opened in 1909, it sold "distress merchandise"—items that were damaged, outdated, or unpopular—at reduced prices. What set it apart was its automatic price reduction system: prices were lowered by a set percentage after 12, 18, and 24 selling days if the goods remained unsold. After 30 days, unsold items were donated to charity. This innovative approach, initially operating at a loss, eventually became a significant success, even sustaining the profitability of Filene's during the Great Depression. The concept of a "bargain basement" refers to a section of a store where merchandise is sold at reduced prices.12