Markdown Optimization

Maximize revenue and achieve your merchandising goals each season by recommending the optimal timing and depth of end-of-season and end-of-life markdowns.

Make proactive and successful markdown decisions to maximize margins.

Sophisiticated optimization algorithms evaluate the tradeoffs between sell-through and revenue.

Improve margins
Increase sell-through
Reduce markdown loss

Proactively achieve merchandising goals each season and at the end of a product lifecycle.

AI-driven Optimal Markdown

 Leverage full capabilities of AI to identify optimal time and markdown depth by considering future demand forecast, seasonality, price elasticity factors, end-of-life dates or season-end dates, current inventory, current price and sell-through target 

Prioritized Benefit Opportunities

Identify categories with the greatest potential for increased revenue through the implementation of immediate markdown, using the unique 4R Wait-Loss™ prioritization methodology 

 Easy Markdown Configurations

Allow for easy configuration of markdown decisions at any hierarchy aggregation level, giving you a complete view of your inventory

What-if Scenario Simulation

Simulate and evaluate multiple markdown trajectories at different dates and markdown percentages gaining visibility into the projected impacts to reassess and possibly revise your markdown strategies

Visualize Benefits

Feature-rich user interface that visualizes benefits from assortment optimization, including detailed location-level recommendations

Location-specific Markdown

Differentiate markdowns optimally between regions, climates, and store clusters based on location-level price elasticity

Learn how to utilize markdown strategies as part of their overall merchandising plan and treat inventory as an investment, instead of a liability. 

achieve Business Goals

Optimize markdowns by adapting to your goals, whether it is to maximize margins or clear out inventory

Maximize profitability

Determine markdowns that balances margin reduction against sales increase, finding the sweet spot that results in the highest total profit 

Optimize Demand Throughout Product Lifecycle

Calibrate price elasticity to determine how products respond to price changes and predict how much of a lift in demand will occur at a given discount level  

Reduce Risk of Excess Stock

Proactively identify products for markdown, reducing the risk of excess stock, whether at season end or lifecycle end

Streamline Assortment Changes

Take advantage of optimized markdowns to eliminate ‘dead’ inventory ahead of planned assortment changes, allowing new assortments to flow smoothly into stores

Learn more about 4R Assortment Optimization, part of the Intelligent Inventory Optimization suite of solutions.