Now we enter the big debate, how much do you reduce by and
when? My belief is that we have a very small window of opportunity to effectively
clear stock and the process needs to be like a military procedure, hit them
hard and hit them quick! Start with a
minimum of 25% off or a 1/3rd and follow with 50% off within 2 weeks. Some
lines may have performed that badly they will need to go straight to 50%
off. After a further 1 – 2 weeks, all
remaining lines should be reduced to a price rather than a % off and should be
merchandised accordingly. Eg; all now
£10! At this stage it is also beneficial to merchandise to size.
The Sale - Part 2
Markdown procedure; You should have been regularly reviewing the performance of
your product lines for a few months, and if you were then you will already be
aware of the worst sellers and lines destined for the red pen! These should
join the rails along with any lines left over from any Mid season sale and any
oddments that are remaining from good selling ranges. Take this opportunity to
tidy up & clear out the stockroom, as oddments can often lead to a
confusing merchandise message on the shop floor. These need to be regular
removed from sale or re merchandised.
Personally I rarely agree with putting items in stock rooms awaiting the sale
but as we all know there are always exceptions to a rule.
