Q: As we head into fall, am I going to have to take the tremendous amount of markdowns that I took last year to move inventory?
A: I don’t think you have to. We are already seeing markdown levels that are lower than last year. You still have to be more promotional than you have been in the past but your markdowns shouldn’t be nearly as steep as they were when the financial crisis hit last fall. Most of our merchants have managed their inventory correctly and are carrying 25% to 30% less than last year so they don’t have as much inventory to clear. Hopefully, you are in a similar position. If not, it is time to readjust your inventory plans.
Date answered: 09/16/2009
Question raised by: Michael