Markdown Optimization Implementation Case Study

Client: A leading fashion retailer with more than 700 stores

The challenge

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 practice for the design of the new processes that would strengthen the value of the MDO solution, the definition of new organizational roles, and the personalized one-on-one coaching and training of buying and planning team members to ensure the promised return on investment would be realized. PwC Canada's Retail Consulting Services was engaged based on its extensive experience in implementing leading markdown solutions more than 10 times and strong endorsements from previous clients.

Our approach

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,  PwC Canada's Retail Consulting Services ensured 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 analytic-driven zone pricing decisions. PwC Canada's Retail Consulting Services then managed the change to markdown optimization through the launch process, providing comprehensive training on both process and technology and live coaching of hands-on users and executive stakeholders to establish markdown optimization as a key component of in-season merchandise management.

The result

This was the most successful technology implementation the client had ever experienced. 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 leverage attributes, forecast analytics and powerful technology to complement the buyers’ passion for fashion and free them up from manual spreadsheet analysis.