AUR against the plan, not against last week
Compare to schedule
A week-over-week drop is expected once a markdown fires. Compare AUR to what the plan assumed for this point in the cadence, not just to the prior period.
AUR is not the ticket price — it's the realized average across every unit sold at every price point that occurred. It's also not the same thing as average order value (AOV) or average transaction value (ATV), which measure revenue per transaction rather than per unit. The two connect through units per transaction (UPT): AOV ÷ UPT = AUR. A store can grow AOV purely by selling more units per basket while AUR per unit keeps sliding — which is why AUR needs to be read on its own, not inferred from AOV.
Worked example: net sales of $18,000 across 500 units sold in 320 transactions gives AUR = 18,000 ÷ 500 = $36.00, UPT = 500 ÷ 320 = 1.56, and ATV = 18,000 ÷ 320 = $56.25. If the original ticket price was $50, AUR is running at 72% of ticket — a useful number only once it's compared against what the plan expected at this point in the markdown cadence.
net sales ÷ units sold
net sales ÷ transactions
Implied blended markdown assumes net sales reflect actual realized pricing with no other cost changes — it's a read on price realization, not a substitute for the planned markdown schedule.
| Cadence stage | Retail price | Cumulative AUR | AUR as % of ticket | Maintained margin |
|---|---|---|---|---|
| Full price | $50.00 | $50.00 | 100% | 50% |
| 1st markdown (20% off) | $40.00 | $44.10 | 88% | 45% |
| 2nd markdown (40% off) | $30.00 | $37.80 | 76% | 38% |
| Clearance (60% off) | $20.00 | $28.90 | 58% | 29% |
Cumulative AUR blends prior full-price and discounted units sold with the current stage's units, which is why it declines more gradually than the current price. Figures are illustrative — replace with your own class-level history.
A falling AUR is not automatically a problem — if the plan called for a markdown this week, AUR should fall, and maintained margin should hold at the planned level. The signal worth acting on is AUR falling faster than the schedule assumed, or maintained margin sliding at the same time AUR falls, which together mean units are moving through at deeper discounts than the plan budgeted for.
Track AUR at the class or SKU level, not just store-wide — a store-wide AUR can look stable while masking one category running well behind plan and another running ahead of it. The narrower the slice, the sooner the drift is visible and the sooner the next markdown decision can be adjusted before it compounds across the rest of the season.
Reading AUR week to week
Compare to schedule
A week-over-week drop is expected once a markdown fires. Compare AUR to what the plan assumed for this point in the cadence, not just to the prior period.
The margin check
AUR falling as planned with maintained margin holding is a plan executing normally. AUR and margin both sliding below plan is drift worth acting on.
Separate volume from price
A rising unit count with falling AUR could mean the markdown is working as intended, or that units are simply being given away. Check sell-through velocity alongside AUR before deciding which.
Pair AUR with weekly sell-through to separate velocity gains from margin loss.
Check whether the margin implied by current AUR matches the plan.
See the starting ticket AUR is drifting away from.
The full formula reference AUR sits alongside.
Answers
Model the planned price at each markdown stage and see where actual AUR is running ahead of or behind the plan.
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