Choose the Right Markdown Strategy

Stagnant inventory is perhaps the greatest enemy of margin. Decision-makers often wrestle with whether to quickly mark down prices in order to cut their losses or sit on inventory to protect margins while cluttering their assortment mix. These decisions are frequently made with little insight into the true value of each markdown. Additionally, price cuts are often implemented across the entire chain. This “sweeping” approach to markdowns often takes place too soon or the reductions are too deep. While this approach is usually constrained by store execution, it can needlessly erode margins even then further.

Increase sell-through with a data-driven markdown strategy

Antuit’s Markdown Pricing solution, built on its Integrated Forecasting System (IFS), uses predictive pricing models, market mix strategy and shopper behaviors to determine the optimal markdown strategy. Decision makers, empowered by insight and visibility, can increase sales velocity while protecting prices and margins from unwarranted reductions.

Specifically, the Antuit Markdown Pricing solution determines the following:
  • The optimal price point (low enough to move the merchandise but high enough to prevent unnecessary margin cuts)

  • The optimal geography, cluster, zone or store for sequenced markdowns

  • The optimal timeframe or markdown schedule

The Benefits
  • Increased sell through of non-productive inventory

  • Improved margins and revenues through market pricing strategy

  • Seamless and efficient workflow and automation of process

  • Visibility into non-productive inventory and strategies to solve the problem profitability

  • Understanding of total category impact of markdown decision-making