CLIENT: A multi-billion dollar national retailer.
After several quarters of declining sales and profits, this national retailer needed transformational change to reverse downward trends. PwC Retail Consulting Services was selected to drive a multi-year merchandising program. The client selected markdown optimization (“MDO”) as the first priority to realize rapid ROI and help fund longer-term initiatives.
We led the MDO project, spanning markdown strategy, business process, organizational changes, testing, and training while leveraging our deep expertise in many previous MDO projects.
Key activities included:
The markdown project has been a resounding success. We implemented interim rules-based markdowns to drive immediate benefits, and planned the subsequent MDO initiative. Business strategy, not budget, now drives acceptance or rejection of markdown recommendations.