Worked scenario
Rakhi in August is worth nothing in September
Occasion merchandise has a cliff rather than a decline, and buying it on recollection means the mistake is only visible after the date.
3 min read
Much of a gift shop's range is tied to occasions. Demand rises steeply, peaks, and stops on a specific day.
The cliff is the whole problem
Ordinary slow stock can be cleared over months. Occasion stock is worth its full price on the day before and close to nothing the day after, so the discounting decision has to be made while the stock is still selling.
Last year is the only guide
Line-level sell-through from the previous occasion is the best available input to this year's buying, and it is usually not consulted because it was never recorded in a form anyone can retrieve.
What changes
- Occasion stock identified with its own selling window
- Last year's sell-through available at buying time
- Markdown started before the date, not after
- Residue measured and carried into the next year's decision
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