December Discounting and Sell Through Rates

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December Discounting and Sell Through Rates

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For the past 12 months we’ve been talking to retailers and brands about the two biggest problems facing them today - over and under stock.

If they’re growing quickly they can’t predict how much stock they should be holding, this results in too little of the best performers and lost revenue. If they’re not performing strongly then they end up carrying too much stock and this results in over stock problems and large volumes of products being sold at a discount.

It’s something which is at the core of retail and with changing trading conditions has a huge impact on every company. A small improvement to either of these areas can see a huge jump in profits and change move consumers away from a discount driven approach.

At Mallzee Insights we have a unique position in tracking the discount and sell through rate of over 150 retailers and leading brands in real time through our chart topping shopping app Mallzee.

For the month of December we saw the following core metrics based on 124,000 products from over 150 stores.

Volume of Products on Sale
50.8% of products had a sale discount associated to them at some point during the month.

Level of Discount
The average level of discount applied was 38% per product. This does not include any promotional offer level.

Sell Out Rate
44% of products sell out entirely within 3 months of going on sale.

Bestsellers
3% of products sell out on the first day of going live.

Whilst this data is used primarily to power our apps, the real value is unlocking it for brands and retailers of all sizes.

We’re now using this data to create a picture of the volume of products that are available at a discount, how deep the discount is and what volume of products sell through too early in the season to generate the best return for the retailer/brand.

Going forward we’re going to be sharing the average levels from the industry to allow companies to benchmark themselves and understand how the wider market is behaving in terms of discounting and full price sell through.

For more in depth analysis or to discuss how you can reduce your discounting and sell out rates don’t hesitate to get in touch with our retail team on HQ@Mallzee.com

Cally Russell
Jan 04, 2018

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