Making June markdowns

Q: After a surprisingly good May, it seems like my business has come to a halt. What level of markdowns should I be taking to get customers shopping again?

A: By now, most retailers should be through their first markdown of 25-30 percent, and moving to deeper markdowns of around 40-50 percent. If you are just marking down now, you’ve come late to the party.

These markdowns are critical not just for clearing old product, but also for bringing in customers to see your newly landed fall goods. I recommend that you skip to the deeper markdowns now, and hope that your old product doesn’t take up valuable floor space as we get further into fall sales.

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avatar About Steve Pruitt

Steve Pruitt is founder and Senior Consultant of Blacks Retail Analysis and Blacks Consulting. With over 30 years of experience, Steve is one of the most respected merchandise analysts in the industry. His specialty is apparel merchandising and he has worked with clients in every sector of this category. Steve’s approach is highly customized; he tailors his analyses to the particular needs and market of each client. His work ties together the merchandising piece of the business with the client’s overall financial goals to increase sales and streamline operations. Steve is also a trusted general business consultant, known for his ability to help retailers plan growth and manage change.
 
Ask Steve about merchandise planning and strategy
561-727-8567
Steve@Blksretail.com
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