Fashion retailers such as H&M, Zara, and Wet Seal have perfected the fast fashion retailing model. The concept requires no replenishment in order to maintain assortment freshness and to create a sense of urgency for the consumer to purchase now. However, maintaining assortment freshness results in high product turnover, making markdown optimization a necessity.
Wet Seal, for instance, needed to move from ad-hoc markdowns and dealing with surplus inventory to handling markdowns methodically across 8,000 SKUs with only 12-15 week lifecycle (from DC receipt to exit). By optimizing and automating markdowns, Wet Seal is reaching their goal of assortment freshness, which in turn increases sales.
If you're interested in learning more, register for a free webinar occurring on May 13th featuring Join Daniel Ryu, Vice President of Planning and Allocation at Wet Seal. He'll be discussing how the fast fashion retailer maintains their goal of assortment freshness.
