Markdown: Category and Replenished Goods – Long Life
Profitably Clear Inventory
Revionics Markdown Suite helps retailers to efficiently manage markdowns that meet inventory and profit goals within a workflow tailored for category management processes. Retailers can quickly create, simulate, and forecast markdowns and cadence to drive the best clearance rates at the highest margins. Watch this video to learn more.
Shifting consumer demand, increased competition, an acceleration of new products, and omni-channel pressures have created an environment where unproductive inventory is now a more painful issue than out of stocks. This is the new retail reality.
This new reality is characterized by neighborhood stores and local product mixes, channel convergence, improving brand and social reach, customer experience, and multiple events to drive traffic and move merchandise. The result of this, is that the prevalence of markdowns has increased and their role in retailing has changed.
No longer that black mark, markdowns, when executed strategically, are critical component of modern retailing.
- They enable retailers to consistently and profitably flow through merchandise (even the poor performers).
- They ensure merchandise is out by a specific date but also makes sure it is there until the new merchandise is ready to take its place. That maintains a full, fresh presentation for the customer.
- Discounts attract customers and retailers often receive a better price than a jobber or secondary market is willing to pay.
- And finally, because of all of the pre-mentioned points, they remove business risk and improve financial results.
Revionics Markdown Suite, allows the retailer to be responsive the current customer and conditions. Through proven science, deep customer analysis, coupled with retailer strategies and delivered through an intuitive, process-driven workflow, retailers can maximize their return on inventory AND improve their customer relationship.
With Revionics Markdowns you don’t just cut prices, you craft them. They are refined by your strategies and goals for every category, every event, and every situation. Whether that is maximizing sell-through, maximizing margin or finding the balance between the two.
Unfortunately, many retailers delay the evaluation of the markdown process. They wait until the sales have gone well past peak and then are forced to take deep, enterprise-wide discounts to escape their situation. These tactics hemorrhage margins and ignore consumer demands.
Retailers that use Revionics, bring surgical precision to the markdown process. They can manage markdowns at the enterprise, channel, zone, or location level. But by starting the evaluation process early, aligning strategies, and listening to consumer signals, the discounts are more effective. Also, just because an item is being evaluated for markdown does not mean it has to have one. Overall, this leads to an increase of sales, margin, and sell-through.
Users of Revionics Markdowns don’t make decisions blindly. They can simulate, forecast and compare results before making any decision. But once set, the beauty is that users work by exception management.
Free of the shackle of having to constantly check and approve every markdown, every week users are free for more productive work. Markdowns will make the necessary adjustments within the set rules and parameters. And if an exception does occur, users are alerted and drawn to it.
While these are some factors needed for success, there are several others. In many cases the costs of clearing products is supplement by the vendor, Revionics Markdowns can include those funds while creating the markdown plan. Revionics is also aware of promotions and will adjust and forecast accordingly. For slow moving merchandise, demand models are aggregated to generate higher confidence on any recommendation. Price Zones can be automatically created, if the user desires.
And finally, Revionics models are self-learning, unique to the retailer, and automatically refresh every week. With these retailers are always responsive to the current conditions, inventory, and trends.
An enterprise view of inventory is critical when generating markdown plans. However, some antiquated supply chain solutions cannot provide future allocations. This does not hinder Revionics Markdowns. If the retailer can’t provide future distribution plans Revionics can infer where that inventory should go. And in the spirit of transparency, that information is accessible to the retailer.