Make Markdowns A Smaller Part Of The Cost Of Doing Business

Written by Michael Forrest

Michael Forrest is CEO of Surefront, a PLM & go-to-market accelerator that delivers a 10x+ ROI for retailers, brands and suppliers.

Since the pandemic, many retailers have resigned themselves to the idea that markdowns are simply part of the cost of doing business. This is rarely the case. In 20+ years of retail leadership, I’ve witnessed markdowns serving a different function—that of a painful lesson for retailers on how to listen to your customer better.

Customer behaviors have changed since the pandemic. Expectations for convenience are at an all-time high. In fact, 52% of consumers say that more than half of their purchases are influenced by convenience. The acceleration of online adoption coupled with supply chain issues left brick-and-mortar retailers with too much inventory they don’t need and not enough that they do need.

Let’s be clear: It’s not the shifting retail landscape that’s challenging businesses. The only thing that will kill you in retail is arrogance. You have to change at the pace of your customer to connect with them in the here and now. A retailer’s product assortment, or merchandise mix, can make or break their business. But “the more, the merrier” is not the answer when it comes to purchasing inventory.

Let’s look at customer expectations, the stocking issue, and how you can shorten purchase cycles to be more reactive.

Customer expectations have changed.

Read the Full Article at Forbes