Markdown Optimization

For retailers in fashion, seasonal, or limited life-span product businesses, profitable inventory liquidation at the end of a product’s life cycle is essential for maintaining healthy turnover. Whether stand-alone or part of our Lifecycle Pricing solution on our native AI ONE™ Platform, Markdown Optimization de-risks the investment in inventory that retailers must make to catch trends, avoid lost sales, and stay current while maximizing revenue and margin. Our solution offers detailed analysis, a deep understanding of price response, and robust analytics that quickly identify even minor trend shifts by product location. It's not just about lowering prices - it's about making data-driven decisions that optimize profits while managing inventory risk.

Markdown Optimization goes beyond simple price cuts, offering a strategic approach informed by comprehensive data and insights. With continuous learning and auto-remodeling capabilities, our platform adjusts to daily market changes by location. It provides granular modeling for precise pricing, either by location or chain-wide, ensuring the best margin return on remaining inventory. The solution automates markdown pricing, supports simulations and scenario analysis, and integrates with other business elements, such as allocation decisions and cross-channel policies. With Digital Wave Technology's Markdown Optimization, retailers can refine their strategies and respond to business changes with ease, enhancing their operations through automation and AI.​