Markdown Optimization for a Shoe Retailer
Reno & aifora
In order to prove the usability and applicability of the aifora pricing tool, a proof of concept was conducted for a selection of product groups. First, aifora performed a retrospective analysis of Reno’s data, created the mathematical models and integrated Reno’s SAP system with the aifora platform to ensure a continuous exchange of data. Next, the aifora solution was configured according to Reno’s markdown strategies, business rules and workflows. Finally, the users were trained and onboarded so that they were able to apply the new tool efficiently and effectively.
Following the successful proof of concept, aifora’s Markdown Optimization tool was rolled-out for all product groups, stores and countries. A Customer Success Manager supported the change management process and continues to support the users. Reno continues to increase the level of automation, as necessary.
- Consumer demand is forecast per style, based on current and historical transaction and inventory data
- Using demand forecasts and price elasticities, Reno is now able to set the right markdown amount at the right time for each product in each sales channel
- Reno’s specific business rules, budget targets and planned activities are taken into account in the price calculations
By implementing aifora’s markdown optimization solution, Reno has been able to achieve its desired objectives: increased sales and revenues. Furthermore, Reno now has the ability to quickly react to changing market conditions thanks to real-time demand forecasts. Reno is particularly happy with the level of flexibility and transparency provided by aifora’s solution.