The right and wrong way to take markdowns

by Steve Pruitt

Are you seeing any reoccurring mistakes that retailers are making after the holiday season? Is there a right and wrong way to take markdowns?

A: The right way to take markdowns is progressively; do not hold on to your markdowns too long. If you don’t take a deep enough markdown, the goods won’t sell. Taking them early clears the way for new inventory. The trick is taking them in a timely manner—the longer you wait the deeper the markdown is going to have to be, so be strategic. Pick the items that are selling the slowest and give them a deeper markdown.