Q: I’ve started landing goods earlier in the season. Should I adjust when and how I take markdowns?
A: The quick answer is yes—you should take markdowns earlier. If you are landing goods early, the merchandise is aging earlier in season and needs to be cleared out.
But make sure that you are competitive with your markdowns and in line with other retailers in your category. For instance, luxury retailers put off markdowns longer than more moderate operations. It’s important to know where you are in the cycle so you can take timely markdowns.
Date answered: 09/15/2008
Question raised by: Glenn C. Sodsbury