For retailers, optimizing markdowns can be an effective process for reducing excess inventory; however, implemented incorrectly, it can lead to weak margins and inventory imbalances. Increasingly, retailers are faced with a variety of markdown related challenges such as exceedingly deep markdowns on clearance, changing customer behaviour, and ineffective buys leading to excess residual inventory at end of season.
Markdowns can be an emotional and unscientific decision. We work with retailers who want to reduce that subjectivity by using science-based markdowns to increase sell-through and maximize their gross margin return on inventory investments (GMROI).
How PwC Can Help
PwC Retail Consulting Services can help retailers develop new processes and tools that allow planners and buyers to define sell-through objectives at a detailed level and execute against those targets. We have deep expertise in:
Whether you are considering a markdown optimization software purchase or you just believe your markdown strategies need refining, we can create value for your company.
Contact an industry professional in your area to discuss your unique business concerns.