Retail
How markdown optimisation for a major apparel retailer led to 5–10% revenue growth in 3 months
Results
The Problem
A major apparel and footwear brand faced the challenge of clearing inventory and optimising markdowns for products nearing the end of the season across the U.S., Europe, and China. The goal was to move products while increasing margins and revenue across all three key markets.
Key Challenges
- Extensive Product Range – The pricing team needed to set daily markdowns for over 10,000 products across 20+ countries.
- Limitations of Traditional Methods – Forecasting demand was challenging due to the intertwined effects of price, promotions, and inventory levels.
- Diverse Price Elasticities – Variations across countries, campaigns, and product categories made optimisation difficult.
- Complex Pricing Landscape – The exponential number of potential pricing strategies made manual optimisation nearly impossible.
Key Features & Benefits
- Price Elasticity Analysis – Identifies over- and under-discounted products at the country and store level.
- Demand Forecasting – Predicts future customer demand and outcomes for all pricing strategies.
- Fast Optimisation – Determines the best pricing strategy while accounting for strategic and legal constraints.
- Comprehensive Recommendations – Acts as a strategic co-pilot, delivering pricing suggestions by article, campaign, channel, and day.
By leveraging advanced analytics and machine learning, our team helped the retailer achieve significant revenue growth and operational efficiency, reinforcing their leadership in the competitive apparel and footwear markets.
"Working with ADC Consulting (previously acmetric) is tremendous. Their hands-on approach and problem-solving attitude have propelled our data-driven sales agenda with remarkable success. From machine learning and business intelligence to project management, their team’s expertise and dedication have exceeded our expectations at every turn."
Continue the Conversation
If you would like to learn more about this report or similar projects we have worked on in the retail sector, please contact Gertjan de Lange (Retail Lead).
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