
Speakers:
AI Optimization of the Markdown Process: How Benetton Raised Revenues with a Prescriptive Approach
date:
Tuesday, October 4, 2022
Time:
11:20 am
Summary:
Markdowns allow retailers to get rid of dead inventory and ensure turnover. Traditionally, even AI tools use a rule-based approach that constrains optimization and hurts revenues. Fashion retailer Benetton partnered with Evo to explore a new prescriptive approach to optimize markdown performance through complex process mapping. The resulting algorithm relied on a formal AI forecasting model feeding a price optimization model—a clear improvement that ultimately increased revenues by more than 5%