Season: Most retailers operate their business around various seasons. Normally, one would see two big seasons-Spring Summer and Fall Winter. Within these, you could see further divisions, but this is also specific to each business.
Full Price: This represents retail sales price of the product, also referred to as MRP (Maximum Retail Price) in certain countries.
Mark Downs: Discounts offered to customers either directly or through promotional pricing.
EOSS: End of Season Sale. Normally, brands/retailers undertake stock clearance by providing attractive discounts usually at the end of a season, hence the term End of Season Sale. Retailers/brands offer an attractive discount to liquidate inventory and is part and parcel of their sales strategy.
Full Price Sell Through: Sell Through calculated for the full price period, i.e. the period during which the products were sold for their full price.
Let me now share some quick pointers on how one should interpret and action on various Sell-Through Ratios:
Successful retail companies use this ratio in deciding their buying/manufacturing requirement and also decide on how to move products from factories/warehouse to stores. With good quality planning using this important ratio, a company can maximise its revenue & profitability and achieve sharper working capital cycles.
(The author is Managing Director, SuperCFO, a virtual CFO solutions company.)