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.Illustration showing “Markdown optimization built for grocery”
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 estimates roughly 30% of the US food supply is lost at the retail and consumer levels. 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.

Inventory assessment for seasonal candy showing stock, sales velocity, and target clear date.
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.

Recommended next markdown move showing timing, discount depth, and expected gross margin.
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.

Daily markdown re-optimization clearing seasonal inventory by the target date.
Inventory assessment for seasonal candy showing stock, sales velocity, and target clear date.Recommended next markdown move showing timing, discount depth, and expected gross margin.Daily markdown re-optimization clearing seasonal inventory by the target date.
Illustration showing “Re-optimize until inventory clears”
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.

Illustration showing “What makes grocery markdowns different?”

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.

Illustration showing “Seasonal event items”

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.

Illustration showing “Perishable fresh categories”

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.

Illustration showing “Calendar-sensitive products”

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 above 99%, 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 modules, one demand model

Hold price image, find the margin

Everyday price solved item by item and zone by zone, with your rules applied and the KVIs shoppers watch held sharp.

Illustration showing “Hold price image, find the margin”

Fund the offers that earn their keep

Model deal mechanics, depth, and timing against the base price behind them, and see the basket impact before the ad drops.

Illustration showing “Fund the offers that earn their keep”

The market, matched to your catalog

7M+ competitive prices a day across a 240+ retailer network, matched to your items and fed straight into the price recommendation.

Illustration showing “The market, matched to your catalog”

Frequently asked questions

When should the first markdown happen?
How does markdown optimization work for perishables?
Can markdowns vary by store?
Does the platform ever mark a price back up?
Can we optimize for sell-through instead of margin?  
How is this different from a generic markdown tool?

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.