Glossary
Markdown
A lasting price cut on a line, usually to clear stock before its season ends, as distinct from a promotion that ends on a set date.
Formula
Markdown depth = (original price minus new price) ÷ original price × 100
Worked example
A coat at £200 full price is marked down to £140. The markdown depth is 30%, and every unit it sells now earns £60 less.
In fashion, footwear and sportswear
Timing matters as much as depth. A line cut with six weeks of its season left needs a smaller cut than one cut in the last week. Fabrik puts price moves of 5% or more on the timeline.
Where it misleads
Judge a markdown on the margin it recovers, not the units it moves. Without a date on the chart, a jump in units after a price cut reads as demand.