What is markdown breadth?
The share of a brand's or retailer's live products that are selling below their full price at a point in time.
Definition
Markdown breadth is the percentage of active SKUs that are discounted. If a brand has 1,000 products listed and 250 are on sale, its markdown breadth is 25%.
It measures how widely discounting is applied, not how deep the discounts are. Discount depth is the companion metric.
How Data Purl measures it
Data Purl records the listed price and the full (original) price of every tracked SKU each week. A SKU counts as marked down when its selling price is below its full price.
Breadth is calculated per brand, retailer, category and country, and can be compared with the same calendar weeks in prior years to remove seasonality.
Why it matters
Rising markdown breadth ahead of a reporting period often signals excess inventory and gross-margin pressure. Falling breadth can indicate healthy full-price demand.
Because it is observable weekly from public websites, it is available well before a company reports.
Pitfalls
- Compare against the same weeks last year. Seasonal sale events make raw week-on-week changes misleading.
- Separate a brand's own site from wholesale partners. A brand can hold price on its own site while retailers discount its products.
Related
- Tracking a company's pricing power with eCommerce data
- Using markdowns as an early inventory and gross-margin signal
- Commercial due diligence with eCommerce data
- Monitoring portfolio companies and competitors after the deal
- Measuring tariff price pass-through with online shelf prices
- Tracking holiday and event promotions year on year
- Using eCommerce data in a consumer earnings preview
- Tracking product launches and newness
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