Retailers Re-evaluate Their Markdown Process To Recoup Dollars Left On The Table

Retailers, from apparel to electronic and specialty, are realizing the importance of applying scientific processes to the art of markdowns in order to optimize all markdown decisions.
By: EyeForRetail
 
March 30, 2007 - PRLog -- Chicago, USA (PRWEB) March 30 2007 – Markdown optimization is rocketing in status to become as important as pricing and promotions for both short and long lifecycle retailers. But what has brought about this shift in priority?

Maree McMinn, Strategic Pricing Manager of AAFES sees markdown optimization as an untapped opportunity for her business; “Markdowns are out of control and with no tools to provide insight into the best course of action we are leaving millions of dollars on the table”.  

Maree continues, “We are looking for ways to implement true markdown strategies as we move from season to season and make the most profitable decisions through the entire product lifecycle.”

Manu Sareen, Sr. Pricing Manager, Pricing Strategy/Future initiatives and Chris Smith, Sr. Pricing Manager, Price Optimization/Markdown at specialty store Best Buy, where markdown science is currently at the very early stages of development, both know first hand why markdowns have shifted up the priority list for their company; “Specifically in Best Buy's case, [it’s because of] the high potential for return on investment. Due to large margin degradation at the end of product life-cycles we believe that any science/process improvement can help bottom line”

Frank Jones, Vice President of the Performance Improvement Practice of AlixPartners and speaker at Retail Clearance and Markdowns 2007 believes that the fear of being left behind competitors who utilize markdown optimization technology is just one of many reasons behind this growing trend; “Competitive pressures create demands on retailers to manage margins and certainly markdowns have a large impact on gross margins”.

Frank continues, “Markdown management has always been a priority in some retail businesses (e.g. clothing, soft goods and electronics) but now the pace of change in product offerings has increased to the point where retailers must manage markdowns or risk severe impact to their business. Retailers have to be on top of the markdown process or they'll end up with large inventories of basically obsolete product.”

Maree, Manu, Chris and Frank are just four of the retail clearance and markdown experts confirmed to speak at the first ever Retail Clearance and Markdowns Conference, in Chicago, June 20-21.

This exclusive conference zones into the entire markdown process from planning to execution and is a must attend event for any retailer who wants to make better markdown decisions.

FC Group [First Conferences Ltd] is a UK based publisher, event origination and marketing company. Operating internationally in multiple vertical industries the company is known for its high level summits and industry news services.

Website: www.eyeforretail.com/markdowns
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