This is the metric that feeds into their overall return on investment.Īsset Efficiency, as the name suggests, is a group of metrics that help define how efficiently Walmart is handling their assets (in this case, your inventory!). While all of these profitability metrics are important, in my experience it is Maintain Margin (abbreviated MM%) which Walmart pays attention to the most. In the above calculation, the Cost Complement is simply the "cost" part of the IMU %. Maintained Margin = Initial Margin % - (Mark Down % x Cost Complement).In other words, this is how much profit Walmart actually realized (or maintained!) after the consumer purchased your item. Maintain Margin is, simply, the margin remaining after markdowns. This can also be expressed in dollars or as a percentage. So, what is left after all of these markdowns? The answer is a metric called Maintain Margin. It is a critical metric to consider when assessing the overall performance of your account. Store markdowns represent the first reduction in Walmart's expected profitability. It can be expressed in terms of dollars or as a percentage of retail sales. While some categories are more markdown intensive than others, I have never worked in a category that had no markdowns.Ī markdown is simply a reduction in Walmart's expected sales price. Well, if you have any retail experience at all, you know that markdowns happen. The key phrase above is "assuming there are no markdowns. Assuming there are no markdowns or reductions in their established retail price, they would make 50% when the customer purchases your item from Walmart! Think of IMU as Walmart's potential profit.
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