You’d be forgiven if the word ‘markdown’ sent a chill down your spine. As a retailer, if you have to sell at a reduced price you assume your brand is bound to suffer a loss, right?
On the other hand, staying away from markdowns can have its own negative impact on your business: holding onto slow-moving merchandise which you hope to sell at full price will only lead to stale stock occupying your store space and consuming your resources. It would also mean disappointing customers who come in to your looking for the latest products and styles, who will be met with last season’s stocks on your aisles. So what can you do to minimize the negative impact of markdowns?
Well, when it comes to the product and pricing lifecycle, it’s important that you implement a markdown strategy as it can capture revenue even at the end of a product’s life. If you plan your markdowns wisely, some benefits you can expect include: