Case Studies / Retail

Fashion Retailer Optimizes Seasonal Inventory

How a fashion retailer mastered seasonal inventory management, reducing markdowns by 40% while improving sell-through rates by 15%, transforming profitability across 150+ stores.

Industry: Retail / Fashion
Company Size: $600M Revenue
Implementation: 5 months
Solution: GoodStock Pro

The Challenge

This mid-market fashion retailer operates 150+ stores across the country, selling trend-driven apparel with 4 major seasonal collections per year. Managing 18,000 SKUs with short lifecycles, unpredictable fashion trends, and the constant pressure to minimize markdowns created significant operational challenges.

Key Problems:

  • High markdown rates: 35% of seasonal inventory ending up on clearance, destroying margins
  • Trend forecasting: Difficulty predicting which styles would resonate with customers
  • Size/color optimization: Wrong mix of sizes and colors led to stockouts in popular variants while excess in others
  • Seasonal transitions: Poor timing of inventory buildup and drawdown across seasons
  • Store allocation: Inconsistent performance across stores due to poor inventory distribution
"Fashion retail is unforgiving. If you buy too much of the wrong product, you're forced to markdown. If you buy too little of the right product, you leave money on the table. We needed a better way to navigate this challenge." Chief Merchandising Officer
35%
Markdown Rate
18,000
SKUs
150+
Stores
68%
Sell-Through Rate

The Solution

The retailer selected GoodStock Pro for its advanced seasonal forecasting capabilities, size/color optimization features, and proven track record with fashion retailers.

1

Historical Analysis (Month 1-2)

Analyzed multiple seasons of sales data to identify patterns in style adoption, size/color preferences, and regional variations. Established benchmarks for seasonal forecasting models.

2

System Configuration (Month 2-4)

Integrated GoodStock Pro with POS, merchandising, and allocation systems. Configured seasonal forecasting algorithms and size/color optimization models with store clustering.

3

Seasonal Rollout (Month 4-5)

Implemented for upcoming season with continuous learning from early sales data. Trained merchandising, planning, and allocation teams on data-driven decision making.

Key Features Implemented:

📅 Seasonal Forecasting

AI-powered models that predict demand for new styles based on historical patterns and early season signals.

🎨 Size/Color Optimization

Advanced analytics that optimize size and color mix based on regional preferences and historical performance.

🏪 Smart Store Allocation

Intelligent inventory distribution across stores based on local demographics, preferences, and sales velocity.

⚡ Dynamic Replenishment

Real-time inventory rebalancing and markdown optimization throughout the season.

The Results

The implementation transformed the retailer's approach to seasonal inventory management, delivering significant improvements in both margins and sales.

-40%
Markdown Reduction
From 35% to 21% markdown rate
+15%
Sell-Through Rate
From 68% to 83% at full price
$24M
Annual Margin Improvement
Gross margin enhancement
+8.5%
Comparable Store Sales
Revenue growth

Detailed Impact Analysis:

Financial Impact

  • $24M annual margin improvement
  • 40% reduction in markdown losses
  • 8.5% comparable store sales growth
  • ROI achieved in 2.8 months

Merchandising Impact

  • 83% full-price sell-through rate
  • Better size/color mix accuracy
  • Improved new style introduction success
  • Reduced clearance inventory by 55%

Strategic Impact

  • Enhanced customer satisfaction
  • Stronger brand positioning
  • Improved inventory turnover
  • Data-driven merchandising culture
"GoodStock Pro has been transformative for our business. The 40% reduction in markdowns while increasing sell-through rates seemed like an impossible dream. Now we're buying smarter, allocating better, and our customers are finding the right products in the right stores. It's fundamentally changed how we approach merchandising."
Chief Merchandising Officer Mid-Market Fashion Retailer $600M Revenue, 150+ Stores

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