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Case Study 2.3: Determining Weekly Markdowns On Monday morning, the buyer for the mens casual collection department is reviewing their selling reports for the seasonal

Case Study 2.3: Determining Weekly Markdowns

On Monday morning, the buyer for the mens casual collection department is reviewing their selling reports for the seasonal coordinate groups. Here is a recap of the report the buyer generated from their retail reporting system, which details the units sold in the previous week, units sold two weeks ago, the week to week unit sales build, the average retail price for the collections, the weeks of supply, and sell through percentage.

You are preparing for your weekly sales recap meeting with your merchandise manager and need to formulate a markdown strategy for the merchandise that you own too much of for this weeks point-of-sale markdowns. Based on the selling recap, calculate the analytical criteria for you to formulate your strategy.

Selling Recap

Mens Casual Collection Sportswear

Summer

Selling report as of week 4 June

Group Name In Store Outdate Collection Price Range Average Regular Retail Units Sold Week 3 June ST % Units OH Sunday Week Units Sold Week 2 June Build WOS STD Units Sold STD ST%
Summer Collections
Tropical Jungle May Labor Day weekend $59.00$120.00 $89.50 360 7450 450 3900 34.4%
Modern Graphics May Labor Day weekend $69.00$129.00 $99.00 510 7020 710 4280 37.9%
Vacation Getaway June mid-September $39.00$99.00 $69.00 650 5190 590 3050 37.0%
Beach Life June mid-September $34.00$89.00 $61.50 720 10860 664 2755 20.2%
Summer Transition July end September $49.00$99.00 $74.00 200 4800 0 0.0%

  1. Calculate the sell through percentage, weeks of supply, and week-to-week build.

  2. Based on the outdate set by the buyer, which collection(s) should receive a POS markdown this week and why?

  3. What would the suggested POS promotion be?

  4. Project the expected sales in dollars and units for the collections that will be marked down and the markdown dollars that the sales will amount to.

  5. If your planned markdown dollars for the week are $40,000, do you expect to be over or under the plan?

  6. Are there any collections that should be reordered by the buyer?

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