When is it time to mark down?

Q: The big department stores in my area have already started to go on sale. Sales are slowing a bit in my business, but I’m not ready to mark down yet. Is this a mistake?

A: You should start taking markdowns now. Because we’re at the end of the season, department stores have already begun marking down, and they’ll be fully engaged by the end of May. You risk having to take deeper markdowns later if you do not take them now, and you could lose business.

Also, you need space on your floor for next season’s early product, so you can start generating margin again.