Gordmans moves to 2nd phase markdown optimization implementation

28 Jun '07

2 min read

Applied Intelligence Solutions, LLC developer of next-generation intelligent software solutions announced that the first phase of the MarkdownXpert roll-out at regional retailer Gordmans has been completed and Gordmans is moving into phase two.

MarkdownXpert was utilized to forecast Gordmans' broad assortment of softlines apparel and hardlines home decor at the item and store level during a three month test of a core group of departments. The most conservative results showed a 9.6 percent increase in margin improvement.

Optimizing markdowns at the store and item level represents an unprecedented capability to significantly drive top-line sales and bottom-line margins, taking into account every store's unique selling and traffic patterns.

Completion of the first phase at Gordmans has proven the retailer's belief that purchasing the AIS markdown solution will significantly impact their capability to gain the most advantageous margin improvement.

"Gordmans rigorously analyzed all markdown vendors available in the market," said Michael James, Chief Financial Officer. "We partnered with AIS because of the unique technology utilized in MarkdownXpert, their capabilities to handle both apparel and non-seasonal goods, and their commitment to customer service. The results of the first phase are very promising and we're excited about the potential the solution has when it's rolled out to the entire company."

A core group of softlines appareland hardlines home decor was identified for the first phase of the roll-out and the methodology was designed to maximize margin on sales and expected margin on residual inventory.

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