What is Markdown Management in Retail? Explained

Markdown Management is the strategic process of adjusting the original selling prices of products to stimulate sales, reduce inventory, and optimize revenue in the retail industry. Retailers use markdowns to address factors such as seasonal changes, excess inventory, or slow-moving merchandise. The markdown process involves carefully determining the timing and extent of price reductions to balance the goal of maximizing profitability while satisfying customer demand. Effective markdown management requires data analysis, understanding customer behavior, and aligning pricing strategies with broader merchandising and sales objectives. This approach helps retailers maintain competitiveness and minimize losses associated with aging inventory.