REPRINT: As seen in: https://www.sdcexec.com/warehousing/article/21159637/antuitai-fashion-retailer-improves-inventory-performance-and-increases-weekly-inseason-sales-with-aienabled-markdown-optimization
Who: $2.5B omnichannel fashion retailer with 40% of revenue from online
Challenge: Optimize the revenue from in-season clearance across all channels for all brands
Solution: Replace manually-intensive Excel tool with AI-powered markdown optimization solution
- Results: In-season clearance and fulfillment optimized with AI-driven pricing recommendations:
80% increase in week-to-week sales for a pilot using two season codes - Non-pilot codes experienced 28% decline over the same period
- 250% improvement in turns without sacrificing margins
- Pilot implementation delivered in under 4 months
The Challenge
Overcome multichannel inventory management challenges to optimize in-season sales
With growing eCommerce channels and increased online shopping behavior, omnichannel retailers are grappling with the increased complexity brought on, in part, by the combination of possibilities for direct and in-store fulfillment. Siloed decisions around allocation, promotions, in-season pricing and, especially, inventory transfers fail to capture the opportunity for margin improvement that lies in the interconnectedness of online and stores.
