Markdown Optimization

Markdown Strategy, Planning, Execution, and Analytics

For leading retailers, optimizing markdown events provides an opportunity to maximize margin, sell-through, and inventory value while improving velocity of product assortment.

Revionics® Markdown Optimization helps retailers navigate markdown strategy and planning, providing access to performance forecasts, on-demand modeling, flexible rule-sets, and strategic recommendations Using this data, retailers can instantly respond to the market to capture consumer demand.

Science-Based Markdowns:

Markdown Optimization combines best-in-class science with thoughtful, innovative design to maximize your inventory potential.

Dynamic Store Clustering
Stores are clustered by markdown event to reflect store-based inventory, item elasticity, geographical trends, and consumer demand.

Seasonality and Holidays
Markdown forecasts leverage seasonal trends, dynamic holidays/events, and the ability to integrate weather data.

Group Items or Optimize Uniquely
Set individual item/stores to optimize at their own rate or develop groups to implement a common markdown timing and/or depth.

Strategy, Rules, and Operations
Within the bounds of business rules and operational constraints, find the best scenario to maximize financial goals.

Key Solution Features:

Plan, budget, execute, and analyze markdown events more effectively with key features included in the Revionics Markdown Optimization solution:

Strategy planning
Store-level optimization
Dynamic store cluster recommendations
On-demand modeling with data from
daily or weekly inventory and sales
Portal-based entry, data integration, or
copy paste to create event groups
Forecast-to-actual reporting
Event comparison and modeling
Flexible rule-sets to define coherence,
ending numbers, preferred steps, lead-
times, maximum markdowns, etc.
Forecast views roll up by product, store,
or coherence groupings
DC Inventory allocation recommendations
Support for Softlines, including style,
size, color, and in-store display

Benefits

Maximize clearance and discontinued inventory value
Execute location specific markdowns
Simulate impact of alternative timing and depth scenarios prior to execution
Automatically measure effectiveness and adapts future discounts and cadence for local shopper demand and inventory depletion rates

Retailers who use Revionics® Markdown Optimization see sales increases of 11-20%, 5% gross margin gains, 4.5-12% increase in capture rate, and 91-94% forecast accuracy. Review our customer case studies to see how we've helped retailers succeed.

Life Cycle Pricing Solutions

Promotion Optimization | Price Optimization | Markdown Optimization