What is the main purpose of a markdown schedule?

The main purpose of a markdown schedule is to outline price reductions for clearing out old inventory. This is essential in retail management as it helps in systematically reducing prices on items that are not selling as expected or are nearing the end of their product life cycle. By establishing a markdown schedule, retailers can strategically time these reductions to optimize sales and reduce excess inventory, ultimately making room for new stock. This approach not only aids in inventory management but also enhances cash flow by encouraging sales in a timely manner. Such schedules usually take into account various factors including sales trends, seasonality, and the need to meet financial targets.