Markdown optimization for Grocery

Markdown optimization built for grocery

Time the first markdown and size every cut on demand and shelf life, so inventory clears by its date without the deep end-of-life discount that gives away margin.

ClearDemand markdown recommendation for a seasonal grocery item.
PROBLEM

Grocery markdowns leave little room for guesswork

Markdowns are a constant balancing act in grocery. Discount too deeply and you give away profit. Wait too long and products expire, lose demand, or miss the calendar date they had to clear by. The National Grocers Association has put grocery shrink at roughly 3% of sales, and unsold perishable inventory is a large share of it.

Poor timing turns clearance into margin loss.
Expiring products leave little room to wait.
Seasonal demand disappears the day after the event.
Blanket discounts ignore store-level demand.
Gut-feel decisions make clearance harder to control.
HOW IT WORKS

How does markdown optimization work?

One deep cut at the end is the most expensive way to clear inventory. USDA research has estimated US grocery stores lose roughly 30% of food to shrink and waste. ClearDemand takes the first markdown earlier and smaller, then adjusts as the item sells.

1

Understand what needs to clear

ClearDemand looks at what inventory is left, how fast it is selling, and how much time remains before the product loses value.

2

Calculate the next markdown move

It recommends the timing and depth of the next markdown from grocery demand signals, so teams avoid one big panic cut and protect margin along the way.

3

Re-optimize until inventory clears

As sales and inventory update daily, ClearDemand recalculates the next best move, so a slow-selling item gets marked again before it runs out of runway.

Halloween candy markdown sequence clearing inventory by the target date.grocery clearance categories, seasonal, perishable, calendar-sensitive, and discontinued.markdown rule controls for timing, depth, objective, and store-level variation.
WHY CLEARDEMAND

One item, marked down the smart way

A 12-ounce bag of Halloween candy, 42% of inventory left on October 30, selling 18 units a day, with a hard clear date of November 5. At the current rate it clears November 12, a week too late. The system sees the gap and sequences the markdowns to clear it on time.

What makes grocery markdowns different?

Generic markdown tools treat clearance the same across every category. Grocery does not work that way. A hard expiration date, a seasonal event, and a planogram reset are three different clearance problems.

Seasonal event items

Halloween candy, Valentine's chocolate, and Easter baskets clear the day after the event or not at all. The markdown has to start early enough to hit the date.

Perishable fresh categories

Meat, deli, bakery, and prepared foods have expiration windows measured in days. Timing is the difference between margin recovery and salvage cost.

Calendar-sensitive products

Super Bowl party trays, holiday-dated packaging, and short-window seasonal items have to clear by a fixed date a generic tool never sees on the calendar.

Discontinued and reset items

Products leaving the planogram on a set date have to move to make room for the new set, without deep cuts that erode margin on the way out.

STAY IN CONTROL

Works inside your rules, not around them

ClearDemand optimizes every markdown, and your team sets the guardrails. Define the rules, limits, and objectives that shape every recommendation, and the system works within them.

Set the timing and pace
A minimum wait before the first markdown, and a minimum gap between changes, so clearance follows your cadence.
Cap how deep each cut goes
A maximum depth per markdown and an overall floor, and prices only move down, never back up.
Choose your goal
Optimize for sell-through when the date is what matters, or for margin recovery when it is not. You set the objective per scenario.
Tailor markdowns to each store
Vary depth by store to match local demand, or group stores together when a business rule requires one price across them.

Real results from our customers

Premium Grocer Fuels Growth

A well-known regional grocer grew total profit 2.78% on 0.9% more revenue, with the largest category gains in frozen and grocery.

2.78%

total profit increase

4.81%

profit lift in frozen

3.13%

profit lift in grocery

$6m+ Profit, Leading Convenience Retailer

A leading convenience retailer moved KVI compliance from a 50 to 60% baseline to near 100%, and gave every analyst a full working day back each week.

20%

gross profit uplift

$6M+

added over two and a half years

8 hours

back to every analyst, weekly

Four teams, one clearance plan

Know what happens before pricing hits your P&L

Every recommendation arrives with its forecast. Units, margin, and what it does to the items around it. Cannibalization on the 24oz, halo on the decaf. You see the basket before you commit.

Every SKU, every zone, every cycle. Surfacing to you for approval.
Price families hold. The 12oz and the 24oz never fight each other.
Your overrides teach the model. It prices more like you, over time.

Recommendations your merchants actually run

You set the strategy. The system applies it to every item, every zone, every week. When a merchant asks why, the answer is on screen: the competitive data, the elasticity, the margin tradeoff.

Hard rules never break. Soft rules flex the way you decided.
Every recommendation shows its work. Nobody takes it on faith.
See which of your rules create margin, and which quietly cost it.

Every decision, measured against what it replaced

Not a forecast. A backcast. Every price change is scored against what would have happened without it. You know what pricing earned you, item by item, and what it cost when the call was wrong.

Why did 300 SKUs change price last Tuesday? The answer is on screen.
Every recommendation, override, and outcome, logged and auditable.
Leadership scorecards, so the board sees what pricing delivered.

Your pricing data, centralized and optimized

One system unifies your competitive, pricing, and promotion data, optimized by an engine refined over a decade in grocery. We build and carry the integrations, from POS and ERP connection through go-live.

SOC 2 compliant and cloud native, with SSO and modern APIs.
Live connections to NCR HQ, PDI, SAP HANA, and Oracle NetSuite.
Fewer ad hoc data requests landing on your team.

Frequently asked questions

What is incremental lift, and why does it matter? (Promotion FAQ, wrong page)
What is promotional cannibalization and how do you avoid it?
How do you choose between BOGO, percentage off, and a loyalty offer?
How do vendor deals and trade funds fit into promotion planning?
Should we be running fewer promotions?
Should price and promotion be planned in the same system?

Take control of your markdowns

Bring one seasonal or perishable category. See how the markdowns would have been timed, and what it would have recovered.