Its Black Friday in April

Unprecedented times for US Retail…

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Weeks of shutdown will almost certainly alter the shape of the recovery for the apparel industry. Apparel retailers need to act now to clear spring and summer products as quickly as possible to improve cash position.

We examined prices today verse Black Friday 2019 and more than 33% of the categories are selling at Black Friday prices. While apparel & jewelry categories are almost at their lowest prices across some major retailers, toys and electronics have not seen the prices drop as dramatically.

Stores are shut in the US, leading both retailers and consumers to turn to e-commerce to drive sales and purchases. To help drive sales, retailers are offering unprecedented deals in April.

Prices are approaching Black Friday level. This is most pronounced in apparel where retailers are facing a reduced seasonal selling season. When stores re-open, they will have a backlog of spring merchandise and the need to add fresh summer goods.

Footwear, home improvement and sporting goods are catching up with apparel and jewelry and beginning higher discount levels, with prices touching Black Friday levels as per data analyzed for these retailers.

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Categories leading the ‘Black Friday in April’ trend

4 out of 8, pure play retailers are at their Black Friday discount levels

Apparel

Jewelry 2 major retailers were analyzed, both matching their Black Friday discount levels

3 out of 6 retailers are at Black Friday or lower prices

Footwear

2 out of 5 retailers are pricing closer to their Black Friday discount levels Home

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Only 1 out of 3 retailers are offering discounts

Toys

Both retailers that we reviewed are holding on to their regular price strategies Sporting Goods

Categories that haven’t witnessed big discounts due to constant demand and changing dynamics

Of the 3 retailers analyzed, all are holding on to their regular price strategies

Electronics

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Price & Discount Comparison - Black Friday 2019 verse Recent Week

Merchandise Category

Product B.F. Sale Price

B.F. % Off

30th Mar Sale Price

30th Mar % Off

3rd Apr Sale Price

Verse B.F. Price

3rd Apr % Off

Verse 30th Mar

Note:- This is only a partial list. Analysis included multiple number of items from across various merchandising categories and retailers

Graphic Pullover Hoodie $34.99 36.4% $29.97 45.5% Lower $29.97 45.5% No Change

Barn Jacket female $49.99 49.8% $24.87 75.0% Lower $14.99 84.9% Further

Womens Alpz Jacket $99.98 37.5% $80.00 50.0% Lower $80.00 50.0% No Change

Blue Dress Pants $29.99 68.4% $23.99 74.7% Lower $23.99 74.7% No Change

ReductionApparel

Slipper $41.25 25.0% $34.97 36.4% Lower $34.97 36.4% No Change

Shoes Black with Grey $104.99 25.0%. $99.99 28.6% Lower $99.99 28.6% No Change

Shoes $99.90 33.4% $81.97 45.4% Lower $81.97 45.4% No Change

Girls’ Sportstyle Shoes $30.99 22.5% $23.99 40.0% Lower $29.99 25.0% Increase

Footwear

Jewelry $449.99 67.3% $625.62 54.5% Similar $625.62 54.5% No Change

$289.00 71.1% $299.00 70.1% Matching $299.00 70.1% No Change

1/2 ct. Classic Diamond Earrings 3/4 ct. Diamond Earrings

HomeKitchenAid Artisan Bundle. $279.99 48.0% $279.99 48.0% Matching $279.99 48.0% No Change

$229.99 48.9% $279.99 37.8% Higher $279.99 37.8% No ChangeKitchenaid professional mixer

Smart watch $99.99 37.5% $159.9 5 0.0% Higher $135.96 15.0% New Wireless Headphones $15.00 49.7% $29.8 3 0.0% Higher $29.8 3 0.0% No Change

ReductionElectronics

Sportscar Racing 1:8 Scale $34.99 50.0% $64.9 9 0.0% Higher $64.9 9 0.0% No Change

Gaming Console Bundle $199.00 33.4% $258.9 0 0.0% Higher $258.9 0 0.0%. No ChangeToys

Sporting Goods

Louisville Slugger Bat $374.98 24.9% $499.0 0 0.0% Higher $499.0 0 0.0% No Change

$39.99 16.7% $47.9 9 0.0%. Higher $47.9 9 0.0% No ChangeTitleist Pro V1 2019 Golf Balls

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As retailers wait for normalcy and re-opening of stores, an important question needs to be answered

What is the path forward?

Weeks long shutdown of stores is resulting in a loss of peak full-price selling season. Hence, the path forward entails more questions than answers.

How do you account for price elasticity in the new normal vs previous data (quick experiments / agile price changes will be needed)?

What items do / do not respond well to promotions?1

What promotion constructs (BoGo vs % off) and promotion depths (40% vs 50% off) drive sales lifts?

2

3

Which items build the basket?4

What are the best ways to automate markdown decisions?5

What are the rules / thresholds to put items on clearance?

How do you approach pricing for a category that has seen a significant decrease/increase amidst COVID-19 outbreaks?

6

7

We are working with nearly a dozen retailers to keep promos and markdowns sharp. Contact us to understand how.

We help retailers enable A.I. today

Our proprietary, A.I. enabled, demand forecasting & optimization engine is at the core of our SaaS products

Promo SmartOptimize promotions, coupons, discounts to maximize margins

Markdown OptimizerOptimize markdowns to maximize margins

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Assort SmartOptimize buy and assortment for every season to maximize sell through

IRTEliminate stock-outs / overstocking using AI powered smart replenishment tool

Allocate SmartForecast & allocate multi-channel inventory accurately

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