The fashion business is lost by what it does not sell than what it sells. Markdowns are a result of overbuys, wrong buys, or mismatch in distribution. Markdowns are also the highest cost element in any fashion profit and loss statement. Fashion retailers spend over US$ 1 trillion annually in markdowns in in-season and end-of-season programs.
In this edit here, we look at one of the fundamental flaws in fashion markdown management.