Align Inventory Clearance with Business and Financial Objectives 

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.

Science-Based Markdowns:

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

Benefits

  • 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.


 

Life Cycle Pricing Solutions

 

Promotion Optimization   |   Price Optimization   |   Markdown Optimization