CLIENT: A leading fashion retailer with more than 700 stores.
This fashion retailer acquired a markdown optimization (MDO) solution. Realizing that success required more than just providing a new tool to support existing habits, it retained PwC Canada’s Retail Consulting Services to design the supporting processes for the MDO. These new processes would strengthen the value of the MDO solution, by defining new organizational roles, and engaging the buying and planning team with personalized one-on-one coaching and training to guarantee the promised return on investment. The client engaged PwC Canada's Retail Consulting Services based on its extensive experience in implementing leading markdown solutions and strong endorsements from previous clients.
PwC Canada's Retail Consulting Services began by assessing the client’s current processes related both directly and indirectly to markdowns, to identify opportunities to implement leading practices prior to starting the markdown optimization implementation. As the technology was configured, we made sure that the client’s unique requirements were met with creative solutions and designed explicit future state processes for the pricing analysts, buyers and planners who would be making the zone pricing decisions. PwC Canada's Retail Consulting Services then managed the change to markdown optimization through the launch process. We provided comprehensive training on both process and technology, and live coaching of hands-on users and executive stakeholders. This established markdown optimization as a key component of in-season merchandise management.
Not only was the project completed on time and on budget, but it was also an extremely effective exercise in change management. It involved shifting an entire organization to move beyond its historic merchandising processes – where decisions relied on first-hand knowledge of every style and every store – to new processes that leveraged attributes, forecast analytics and powerful technology to complement the buyers’ passion for fashion.