Revionics, Inc. debuted the latest release of its proven Markdown Optimization solution. This release extends the Revionics® Markdown Optimization solution which provides optimization for long life cycle products with new science, data and business rule sets specifically designed to optimize short lifecycle merchandise such as fashion.
This newly enhanced solution helps retailers optimally localize and prioritize start-date, cadence, depth and DC allocation decisions by taking inventory depletion rates, shopper demand patterns, seasonality, budget and labor constraints into account while driving to strategic objectives for exit dates, profitability, inventory position, sell-through and salvage value.
"Retailers of all stripes must think about the role markdown plays across all kinds of product categories, from short life cycle to long. Shifting consumer demand, continued price sensitivity, and omnichannel pressures has created an environment where unproductive inventory is now a more painful issue than out of stocks," said Paula Rosenblum, managing partner at RSR Research. "Markdown Optimization gives retailers a finer-grained approach to managing their inventory through its life cycle and drives powerful results and improves execution across the enterprise."
Optimizing markdowns provides an opportunity to maximize margin, sell-through, and inventory value while improving velocity of product assortment by making granular decisions based on channel and location specific shopper behavior. This enhanced markdown optimization solution enables retailer of all types to plan and manage localized markdown cadence and discount to achieve Category Management and Merchandise/Assortment Planning objectives.
"This release offers the industry a single, unified markdown optimization solution that benefits all types of retailers – from food to fashion," said Marc Hafner, CEO of Revionics. "Across-the-board markdowns have challenged retailers for decades. Typically retailers have struggled with 'too much too soon' or 'too little too late' due to enterprise-wide, emotional decisions which hemorrhage margins and do not achieve financial objectives. Our solution combats this challenge and fuels fact-based markdown decisions that align with local shopper-demand for optimal profitability and a strong competitive edge."
Single retailer solution: food to fashion
This all-encompassing solution supports both markdown event planning as well as ongoing in-season markdown recommendation processes and automatically adapts next step recommendations weekly or on-demand as new trends emerge. Providing performance forecast, on-demand optimization, self-learning demand models, flexible rule-sets and strategic recommendations, this expanded solution offers the following key benefits:
Select the right items, at the right time, at the right discount, in the right channel/store
Drive to strategic and financial objectives
Improve DC Inventory Allocation decisions
Incorporate vendor deals in planning and analysis
Simulate scenarios on-demand to predict results
Measure ongoing effectiveness and adapt to trends on-the-fly