How OFM increased sales season profitability using AI-Driven Markdowns

Introduction

The team at Only For Men was looking for a way to use the power of end-of-season discounts better. With the growth of online & offline channels, it became essential to move further away from bulk discounts and set price markdowns when needed & at the optimal level. Such would be imperative to manage better the impact of end-of-season discounting on the entire organization, be it marketing, purchasing, or other.

Only for Men: looking to create more impact with price markdowns

Only for Men is a Dutch fashion omnichannel retailer with 17 physical stores and a fast-growing webshop. The retailer saw its online store grow by a whopping 30% - 50% these past few years. Yet, the team also had to deal with increasing competition and the aftermath of Covid lockdowns. Finding new ways to work more efficiently and effectively was crucial for increasing profitability and coping with the challenges ahead.

That is why the team saw opportunities with regard to setting price markdowns. They felt that it was hard to use them effectively, raking in revenue and margin where possible without leaving money on the table. And with the increasing number of items and opportunities to alter these price markdowns, they needed to find a way to work more efficiently without having to expand the merchandising team.

So, what the team lacked was a tool to assist in deciding what items to discount and at what level. A tool that would make it possible to evaluate lots of items fast, monitor closely and report clearly.

Introducing Markmi

In a few straightforward steps, we introduced our AI assistant. The team can now run and evaluate scenarios before the season, thus helping to guide organizational efforts (f.i.marketing). They can follow up on performance during the season, see adjusted price markdown suggestions, and take action where deemed appropriate.

Improved results, less time spent!

The results were immediately visible. The team at Only for Men saw an increase in sales, substantially lower leftover stock, less time spent, a +10% in revenue and +3% in margin.

The tool provided perspective and helped the team to get more grip on the situation as they got better at getting the highest ROI out of inventory. That is why Only for Men decided to move forward and use Markmi in upcoming seasons.