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.