Early markdown policy

In the context of retail management this refers to one of the policies adopted by the retailers with regard to the timing of the markdowns. Here, the retailers decide about the timing of the markdowns for various merchandises early in the buying season. Most of the retailers who concentrate on high inventory turnover pursue an early markdown policy. This will enable them to take less of a markdown per unit to dispose off the merchandise. At the same time, the customer seems to benefit, since markdowns are offered that some customers still think of as fashionable. Another advantage is that it allows the retailer to replenish lower-priced lines from the higher ones that have been markdown.