Retviews’ data show the categories with the highest markdowns, however the reasons behind each markdown are different. Brands’ assortment of summer dresses, could have arrived late, causing them to discount a larger share of the collection, in order to eliminate leftover inventory as the season ended. Dresses, however, maintain the lowest discount rate, compared to more casual categories such as leggings, sweatshirts and sweatpants. Consumers are willing to pay full price on occasion dressing, and cut back more on loungewear and athleisure, explaining the higher discount rate for casual apparel categories.
Knowing where to discount and by how much is essential for brands, allowing them to avoid unnecessary markdowns in high-demand categories, thus optimizing their margins.
Avoid unnecessary markdowns and increase your margins with Retviews
One of the main reasons why brands are cutting their outlook for the year, is the fact that they must discount heavily in order to manage the inventory glut, ultimately leading to margin loss. Brands such as Kohl’s, GAP and Old Navy had to heavily reduce inventory, after their collection couldn’t match the changing needs of consumers.
With Retviews, the AI-powered competitive intelligence platform, your brand will be able to detect new trends, pinpoint the right assortment and pricing strategy, in order to enhance your collection’s performance. Avoid the guesswork and hit the market on time, on trend and on cost with Retviews.