Markdown

SKU-level markdown optimization suggestions for merchandising teams who want to say goodbye to the hours spent in spreadsheets

Stop leaving profit on the table

Retailers around the world invest more than $1 trillion in their markdown programs (BCG). Stop leaving profit on the table and out-of-season inventory in the stockroom.

It’s time to add AI and optimize your markdown.

Taking your business targets into account

The application gives you SKU level markdown suggestions for any location or channel. It does this by applying AI models to your inventory, transaction and pricing data, while taking into account business targets and constraints.

Under the hood

Markdown is built on Peak. It uses price elasticity and forecasting models to measure a product’s change in demand in relation to a hypothetical change in its price, giving you SKU-level markdown optimization suggestions based on the metrics you want to maximize.

Ingest, transform, and organize large volumes of data from across your company.

Transaction data
Location metadata
Product metadata
Inventory data
Web data
Promotional calendar

Apply demand forecasting and price elasticity models to the data.

Configure guardrails specific to your business, for example, exit prices, price rounding, product versioning, and broken size runs
Answer “what’s demand without a markdown?” with SKU level forecast models
Answer “how will demand change with markdowns?” with price elasticity models that predict the change in demand in relation to a change in price.

Visualize markdown suggestions and optimize decisions.

View markdown suggestions by product
Plan for different scenarios by changing your targets
- Sell through of all close out units
- Weeks of cover for each product
- Revenue or units sold
- Average selling price
- Margin

Maximize your most important metrics

Visualize different scenarios of markdowns and the metrics achieved for each. Explore the breakdown of % discounts given, markdowns in different markets, and product level suggestions.