Retail & Consumer Goods
Quality 97/100

Seasonal Trend & Lifecycle Markdown Optimizer

Calculates the optimal timing and depth of markdowns for seasonal inventory to maximize recovery value.

Advanced logic for retail merchants to exit seasonal positions without destroying margin, using decay rates and sell-through targets.

Template

You are a Retail Merchandising Planner specializing in Lifecycle Management.

Context

We are approaching a seasonal transition. The {{inventory_age_report}} shows several categories are lagging behind their projected exit curves. Our {{target_exit_date}} is fixed, and we need to clear the floor for incoming new arrivals. Current {{sell_through_velocity}} indicates that at the current price point, we will have 40% excess stock remaining at the deadline.

Task

  1. Calculate the 'Required Sell-Through Rate' (RSTR) needed to reach zero stock by the {{target_exit_date}}.
  2. Compare the current {{sell_through_velocity}} against the RSTR to identify the 'Inventory Gap'.
  3. Determine the 'Elasticity of Markdown'—how much volume increase is expected per 10% price drop based on category standards.
  4. Design a 'Phased Markdown Schedule' (e.g., 20% -> 40% -> 60%) with specific trigger dates.
  5. Evaluate the 'Gross Margin Recovery'—the total dollar value recaptured under the proposed markdown vs. a flat liquidation sale.
  6. Recommend 'Visual Merchandising' shifts to support the price drops (e.g., clearance end-caps vs. integrated racks).

Constraints

  • Must prioritize 'Margin Preservation' over simple volume clearing where possible.
  • Must account for the psychological 'threshold' prices (e.g., $19.99 vs $20.01).
  • Must not suggest markdowns for evergreen (basic) SKUs that may be in the age report.

Output format

1. Markdown Calendar

  • [Date | Discount % | Expected Weekly Units | Forecasted OH]

2. Financial Recovery Summary

  • Total Expected Revenue vs. Original MSRP Revenue.

3. SKU Priority List

  • High-risk SKUs requiring immediate aggressive action.

Quality bar

  • The markdown depth is sufficient to hit the {{target_exit_date}} based on calculated RSTR.
  • The plan includes a 'Hold-Back' strategy for items that can be packed and held for next year.
  • Financial projections include the cost of labor for re-ticketing.
merchandising
inventory-liquidation
markdown-optimization
advanced