Magazine Article
Maximize Markdown Margins
December 21, 2009
•Featured Article: Maximize Markdown Margins
By Erin Harris, Editor, Retail Solutions Online/Integrated Solutions For Retailers magazine
An automated markdown optimization application enabled $600 million Wet Seal to improve efficiencies around promotional pricing and move more merchandise.
Markdowns are critical to specialty retailer Wet Seal's goal of maintaining "assortment freshness," a concept that refers to the retailer's commitment to continuously stocking the store with new items while simultaneously increasing its sell through rate. Maintaining assortment freshness results in high product turnover, making markdown optimization a necessity. To optimize markdowns, Jon Kubo, VP and CIO at Wet Seal, needed a reliable, automated solution to predict the impact of markdowns before they were executed. He also needed to determine the best time for markdowns and monitor the performance of past and ongoing markdown activities, despite the retailer's small planning team.
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