STORES Magazine - December 2008 - (Page 68)

NUTS AND BOLTS / PRICING STRATEGY Sensing a Pattern BY M.V. GREENE Forecasting tool helps Gordmans focus markdowns at the store and SKU levels G ordmans has long been an of f-price department store revered for passing along deep discounts to its fashion- and style-conscious Midwestern customers. At one point in its long history , the Omaha, Neb.-based chain operated as 1/2 Price Stores. So, when it comes to pricing the array tional objectives before they are impleof name-brand apparel, accessories, mented, allowing them to determine the footwear, home decor, designer framost advantageous point in the product grances and furniture sold at its 65 lifecycle to re-price goods to optimize stores in 16 states, Gordmans leaves litgross margin dollars and inventory turn. tle to chance. The mid-market chain emJeff Gordman, the technology-focused ploys predictive markdown optimizapresident and CEO of the company his tion technology to guide its pricing, stagreat-grandfather started in 1915, apbilize inventory, maximize gross preciates the “granular understanding” margins and better understand local that markdown optimization affords his shopping preferences. team of buyers. The technology is being Markdown optimization is a statistiapplied to markdowns at the store and cal forecasting tool SKU levels, rather GORDMANS’ INITIAL than relying on a rigid, that helps retailers reliRESULTS: ably predict how apone-size-fits-all apparel markdowns may proach. improvement affect bottom-line “We have the ability in margin business and operato actually take the 9.6% same SKU and make different markdown decisions across our chain,” he says. “It’s a very different process today.” Gordman operates a company that offers “everyday savings of up to 60 percent” off department and specialty store prices, and he believes that innovation gives the chain an edge in its competition against larger retailers in the marketplace. Then again, retail innovation is something of a family legacy: Grandfather Dan Gordman is credited with bringing central checkouts, shopping carts and self-service shoe departments to the Omaha shopping experience. Gordman, who holds degrees in economics and management from the Wharton School at the University of WWW.STORES.ORG 68 STORES / DECEMBER 2008 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - December 2008

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.