Take control of margin by planning markdownsStarting to plan markdowns is the first step towards higher margins. Planned markdowns are subtracted from the intake margins to calculate actual margins.
The system allows to use permanent and POS markdowns.
Permanent markdownsPermanent markdowns are like the name suggests permanent. Merchandisers use permanent markdowns to mark down last season's goods and clearance items.
Using permanent markdowns generates additional free open to buy budget, because the value of inventory is reduced.
POS markdownsPOS markdowns are used for temporary campaigns, loyalty programmes and other cases where you don't want to actually reduce the value of inventory. POS markdowns will not generate additional free open to buy budget.
Next: WSSI and Open-to-buy