Once products to markdown are identified, consider the type of markdown to adopt into your strategy.
There are two options:
- Temporary Markdown
Temporary markdowns are best used for slow-movers of a seasonal collection to accelerate sales. Usually, temporary markdowns are carried out as short-termed tactical promotions. The limited period of time for markdown creates a sense of urgency among consumers to make a purchase while the offer still holds.
- Permanent Markdown
Usually aggressively carried out on aged stocks, permanent markdowns are executed for an extended period of time until the deadstock is cleared. Examples of permanent markdown range from an end-of-season sale to warehouse clearance.