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.
One product to plan and manage localized markdown cadence and discount for both short and long lifecycle merchandise. Revionics® Markdown Optimization provides performance forecasts, on-demand modeling, flexible rule-sets, and strategic recommendations. Using this data, retailers can instantly respond to local shopper behavior and inventory depletion rates.
Markdown Optimization combines best-in-class science with thoughtful, innovative design to maximize inventory potential.
- Seasonality and Holidays
Markdown forecasts leverage seasonal trends, holidays/events, holiday and event impacts, and weather data.
- Group Items or Optimize Uniquely
Set individual item/stores to optimize at their own rate or develop groups to implement consistent markdown timing and/or depth.
- Strategy, Rules, and Operations
Within the bounds of business rules and operational constraints, recommends the best scenario to maximize financial goals.
- Dynamic Store Clustering
Stores are clustered by markdown event to reflect store-based inventory, item elasticity, geographical trends, and consumer demand.
Key Solution Features:
Plan, budget, execute, and analyze markdown events more effectively with these key features:
- Strategy planning
- Store-level optimization
- 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
- Maximize inventory value, sell-through rates and profitability
- Execute location specific markdowns
- Maintain consistency for style, size, color, attribute and in-store display
- 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.