Fashion retail markdown planning

Apparel adds two problems to an ordinary markdown plan: demand expires on a date, and the assortment breaks as it sells. A style at 70% sell-through with only edge sizes left is not a healthy style — it is terminal stock wearing a good number. Planning fashion markdowns means reading the size curve alongside the sell-through, and setting a hard exit date per season.

Read the size curve, not just the sell-through

Cumulative sell-through treats every remaining unit as equally sellable. In apparel it is not: the units left after the core sizes clear face far weaker demand at the same ticket. Use the state of the run to decide depth, and the class calendar to decide date.

Depth by assortment state, not by units remaining
State of the runMarkdown urgencyUsual actionWhy
Complete run, all sizesLowHold or shallow breakDemand is normal at the current price
Core sizes thinningMediumFirst scheduled breakMove before the run breaks properly
Edge sizes onlyHighDeep break or off-priceCumulative sell-through overstates the health of what is left
Single colour, odd sizesTerminalClearance or bundlePrice against salvage value, not against margin

Planning level

Class sets the calendar, style sets the depth

Coordinated dates keep ticketing and signage sane; style-level depth keeps you from repricing healthy sellers alongside broken ones.

Class or department

Owns the break dates, the marketing beat, and the exit date. This is the level a boutique should plan at almost exclusively.

Style or SKU

Owns depth. Styles with complete runs take the shallow break; broken styles go deeper or move to an off-price channel early.

Colour or size band

Late-season lever only. Splitting price within a style is operationally messy, so reserve it for genuinely terminal size bands.

A workable boutique cadence

For a 14-week season: full price for the first four to five weeks, a 20–25% break once the pace read is clear, a 40% break around three quarters through the season, and a final clearance sized to hit the exit date. Fewer stages than a department store, but each with an assumption behind it — and an ending-stock target the plan is judged against.

Model that cadence against one alternative before the season: an earlier, shallower first break. In most apparel classes, buying velocity while the run is complete costs less margin than buying it after the run is broken.

Keep planning

Answers

Fashion markdown planning questions

Plan the season before the run breaks

Model your apparel class with a sell-through rate per price period, then judge the plan on the slow case — the one where the sizes go first and the units do not.

Open the markdown planner