Celect Markdown Optimization helps retailers understand the impact of markdown decisions on the entire assortment and overall revenue — while avoiding excessive markdowns and missed profit gains often associated with traditional discounting efforts.
Retailers are in a constant cycle of change, ensuring the most in-demand items are on the show floor at the most enticing prices while avoiding extremely low-margin or slow-moving items either stuck between seasons or simply not selling well. The natural reaction to move items quickly is to reduce their price by often drastic amounts, often resulting in the wrong products being discounted at the wrong time.
SOLUTION OVERVIEW (pdf)
Analyze product descriptors, individual customer attributes, transaction data, and inventory data across stores and online to build a model of optimal markdowns.
Proactively optimize assortments, resulting in smart markdowns at the right time to push revenues up and to the right. See the full interaction and implication of your markdowns across the whole assortment - not just per product.
It's not just about reducing inventory, but intelligently reducing inventory. This means understanding rolling historical data, projected inventories based on merchandise buys, and revenue tracking. From this data, know which products to liquidate over a specific period of time and how much.
Predict the best timing for price adjustments in-season and end-of-season. Set discount limits and timeframes for promotions, specifically considering your business constraints and inventory targets.