Are Markdowns Rising While Footfall Stalls? Process Fixes to Improve Shelf Availability, Basket Size, and Operating Efficiency

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

1. Improving Shelf Availability

Better shelf availability begins with accurate demand forecasting and faster replenishment cycles. Supply chain retail consulting focuses on key process interventions:

• Implement real-time stock visibility at the SKU level
• Introduce automated replenishment triggers
• Use historical sales data to improve safety stock parameters
• Align promotion planning with inventory control to avoid over- or understocking

2. Increasing Basket Size

To grow basket size, it’s essential to understand customer behavior and optimize in-store experiences. Retail consulting specialists recommend process improvements including:

• Redesigning store layouts based on flow and dwell-time analysis
• Improving cross-merchandising and impulse zones
• Ensuring consistent stock of frequently paired items
• Training staff to upsell and guide purchases effectively

Data-driven planogram decisions and shopper journey mapping also help guide customers toward larger purchases.

3. Boosting Operating Efficiency

Operational efficiency reduces cost per transaction and enhances customer experience at the same time. Retail process optimization improvements may involve:

• Streamlining stock movement and backroom processes
• Reducing check-out times through better queuing systems
• Implementing predictive staffing based on time-of-day and sales data
• Reducing shrinkage through better controls and process discipline

By applying Lean principles, waste in handling, movement, and waiting can be eliminated at multiple points in store operations.

The Strategic Payoff

When processes are improved at the root level through expert retail consulting India approaches, businesses see multiple benefits beyond short-term sales lift:

• Fewer markdowns due to better stock planning
• Higher basket size driven by product availability and customer experience
• Improved efficiency in store operations, reducing labor and overhead costs
• Stronger customer loyalty through consistent fulfillment

Rather than treating symptoms with discounts, sustainable improvement begins by diagnosing and fixing the processes that shape retail performance every day. Retail strategy consulting provides the expertise and frameworks needed to implement these transformative changes effectively.

About Retail Excellence

For retailers seeking to optimize their operations and improve profitability, partnering with experienced retail consulting experts can accelerate results and ensure sustainable implementation of best practices across all touchpoints in the customer journey.