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NewExplore decision agents and merchant-set guardrails

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Decision chain · 06

Markdown optimisation

Markdown optimisation selects the timing and depth of price reductions intended to reach an inventory or sell-through objective while protecting defined margin limits.

Last reviewed

A schedule, not a reflex

The decision balances remaining units, weeks left, expected demand, sell-through objective and margin floor. Reviewing a sequence of candidate steps makes the commercial trade-off visible.

  • Sell-through target
  • Margin floor
  • Weeks remaining
  • Store or cluster scope

Close the learning loop

The response to each markdown becomes evidence for later forecasts and pricing decisions. Keeping the outcome linked to the recommendation is what turns a one-off action into learning.

Questions

When should a markdown be considered?

A markdown is considered when the expected full-price path no longer reaches the inventory, timing or sell-through objective within the retailer’s constraints.

Why optimise by store or cluster?

Demand and remaining stock differ by location. A single national markdown can discount healthy locations too early and weak locations too late.