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Published
Jun 20, 2018
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Markdown planning helps Arcadia improve sales and profits

Published
Jun 20, 2018

Arcadia has decided to implement a new markdown planning solution to all brands in its portfolio after completing a successful trial in 2017.


Topshop


The British retail group has been working with specialist retail consultancy Thought Provoking Consulting on the new markdown solution, which it said has led to sales and profit improvements which exceeded benefit targets by over 200%.

Markdowns are a common strategy among retailers, used to clear stock and stimulate demand by permanently reducing the selling price of an item. Markdowns can help alleviate challenges such as clogged up space, unhappy customers, slowing sales and lost margin, but at the same time, they bring their own set of challenges.

To find a solution, Arcadia implemented TCP’s proprietary tools and science engine, which uses data science and product history to make specific markdown price recommendations at any given time.

“Fashion retail is an increasingly challenging sector with ever increasing competitive pressures. Now, more than ever, it is vitally important to maximise the profit made on every item sold,” said Subir Gupta, TPC co-Founder and managing principal.

With eight brands, including Burton Menswear, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topman, Topshop and Wallis, Arcadia is one of the largest fashion retailers in the UK. The business has an annual turnover in excess of £2bn and employs over 24,000 staff.

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