Markdown optimisation

Markdown optimisation plans price reductions to balance stock clearance with revenue and margin. It considers factors such as remaining stock, sales rate and time left in the selling season instead of applying the same discount to every item.

The approach may use sales history, demand forecasts, remaining quantities and price sensitivity to decide which items need reductions and when. Some stock can sell at full price with more time, while other lines need earlier action. The aim is to recover value while meeting a clearance deadline, rather than maximise the discount itself.

For example, a retailer with excess inventory may reduce unpopular sizes first while keeping strong-selling sizes at their normal prices. Results must be checked as sales develop. A markdown plan also needs consistent displayed prices and realistic demand assumptions; an automated recommendation cannot guarantee that stock will clear.