In retail and consumer goods businesses across India and globally, rising markdowns combined with stagnant or declining footfall are clear warning signs. They suggest underlying inefficiencies in inventory planning, in-store execution, and supply chain responsiveness. While short-term tactics like discounts may drive sales temporarily, they often erode margins and fail to address the real problem: misaligned processes.

Instead of focusing only on promotions, retail strategy experts recommend that businesses look at how process improvements can help maintain availability, increase basket size, and enhance operational efficiency across the value chain.

Why Are Markdowns Increasing?

Markdowns usually occur due to:

• Overstocking or inaccurate demand forecasts
• Late shipments or delayed store replenishments
• Inflexible supply chains that cannot respond to real-time sales data
• Inventory ageing due to seasonality or poor product placement
• Ineffective in-store execution or merchandising

All of these are symptoms of larger process failures many of which can be addressed through structured improvement approaches like Lean and Six Sigma - methodologies that leading retail consulting firms use to drive sustainable transformation.

The Hidden Impact of Low Footfall

Low or flat footfall can occur due to external factors such as competition, location, or market conditions. However, it can also be worsened by internal issues like:

• Frequent out-of-stock items reducing customer satisfaction
• Poorly managed product assortment or shelf presentation
• Long checkout times or inadequate staff allocation
• Lack of personalization or in-store engagement

These issues lead to missed opportunities and lower basket size, even when customers do walk in. Retail operations consulting helps identify and address these critical pain points systematically.

Fixing the Root Causes: Process Improvements That Deliver