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.

markdown optimization

Make proactive and successful markdown decisions to maximize margins

Sophisticated 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

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 impact of each

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 your overall merchandising plan and treat your inventory investment as opening doors to opportunity. 

achieve Business Goals

Optimize markdowns by adapting to your goals, from maximizing margins to clearing out inventory

Maximize profitability

Determine markdowns that balance margin reduction against sales increase. Find 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.