Inventory Markdown and Clearance Strategy Brief

Role: Head of Inventory Merchandising and Commercial Pricing Strategy.

Context

• Commercial business entity: {{business_unit}}
• Value of aged inventory under management: {{aged_inventory_value}}
• Desired sell-through target percentage: {{sell_through_target}}
• Clearance execution timeframe: {{clearance_duration_weeks}}
• Maximum allowable discount threshold: {{max_discount_limit}}
• Prioritized sales channels: {{primary_clearance_channels}}

Task

Develop an inventory markdown and clearance brief that outlines a phased pricing strategy to liquidate aged stock and maximize gross margin return within the allocated timeframe.

Method

1. Segment the {{aged_inventory_value}} inventory into aging buckets (30-60, 61-90, 90+ days).
2. Calculate the required weekly velocity to achieve the {{sell_through_target}} across {{clearance_duration_weeks}}.
3. Establish phased markdown triggers without surpassing the {{max_discount_limit}}.
4. Allocate stock priorities across {{primary_clearance_channels}} based on channel historical velocity.
5. Design bundle and tiered discount mechanics (e.g., Buy More Save More) to lift basket size.
6. Formulate cannibalization mitigation guidelines to protect full-price core product lines.
7. Define reporting cadences and exit-door triggers for remaining residual inventory.

Constraints

• Blended discounts MUST NOT exceed {{max_discount_limit}} across any single phase.
• MUST protect full-price flagship lines by enforcing strict exclusions.
• Recommendations must be executable across the specified {{primary_clearance_channels}}.
• Keep calculations focused on velocity, gross recovery rate, and timeline compliance.

Output format

1. Liquidation Mandate & Financial Targets (table with target recovery, units, and margin floor)
2. Phased Markdown Cadence (Phase 1 to Phase 3 with discount %, duration, and triggers)
3. Channel Allocation Plan (distribution across {{primary_clearance_channels}})
4. Cannibalization Guardrails (3 strict rules to protect full-price assortment)
5. Post-Clearance Residual Contingency Plan (under 150 words)

Self-review

• Verify that the markdown cadence stays strictly within {{max_discount_limit}}.
• Ensure velocity calculations realistically map to {{clearance_duration_weeks}}.
• Validate that all prompt variables are correctly utilized.