Running a Footwear Store: Size Runs, Sell-Through and Markdowns

• 01Buying is done by style and price, not by the size mix that really sells, so the middle sizes run out in the first month and the extremes remain for a year.
• 02Markdowns start when the shelf looks crowded and not when the pair has aged a fixed number of days, so the full-price window is wasted and the discount goes deeper than needed.
• 03Seasonal stock for monsoon, school opening and wedding months is bought on hope and a supplier advance, and unsold pairs from one season block money for the next.
• 04A pair is tried on, boxes are opened, and a mismatched pair or wrong box means a sale is lost or a return comes back that cannot be resold.
• 05Staff push the pair that is easy to find and not the one with the best margin, and no one sees which counter habits cost the shop.

• Sell-through by size band

  Pairs sold in the band divided by pairs bought in the band, for the season so far.

• Age of unsold stock

  Pairs on the shelf grouped by the month they were bought, with the cost of each group.

• Markdown depth

  Full price less actual selling price on cleared pairs, divided by full price, by style.

• Margin per pair bought

  Total revenue from a lot less its cost, divided by the number of pairs bought, not only those sold.

The core band sold four in five pairs. The large band is where cash is stuck, and the next buy should shift towards core.

• 01Buying evenly across all sizes, when the sell-through by size band shows the core sizes finish first and the extremes remain.
• 02Marking down when the shelf looks crowded and not at a set age, so the full-price window closes without a record of when it did.
• 03Carrying last season pairs on the books at full cost, so margin by supplier looks better than the cash actually returned.

• 01A size-run purchase plan based on what sold last season by size band.
• 02Sell-through by style, size band and price point, reviewed on the same day each week.
• 03A markdown calendar tied to the age of the pair, with a first, second and final step.
• 04A season stock sheet showing what carries into the next season and what clears now.
• 05A count of pairs not found because of a missing box, mismatch or misplaced size.
• 06A return and exchange note with the reason and whether the pair went back to sale.
• 07A margin view by brand or supplier, so the weakest line is visible.

1. Count the pairs on the shelf by size band: small, core and large. Compare with what you sold by size in the last season.
2. Hypothetical example: you buy 200 pairs at ₹800, which is ₹1,60,000. 130 sell at ₹1,400 for ₹1,82,000, and the other 70 clear at ₹700 for ₹49,000, a markdown of 50%. Revenue is ₹2,31,000 and margin is ₹71,000, or ₹355 for each pair bought. A pair sold at full price earns ₹600.
3. Pick the ten oldest styles and write their purchase date. Decide on the first markdown date for each.

1. First call: you describe the business and the numbers you already track.
2. Your first sheet: the one described under What you get, built from your own books.
3. The rhythm: a regular review of sell-through by size band, age of unsold stock, markdown depth, margin per pair bought.
4. What you hold at the end: a written sheet and a named owner for each number.

• Financial Health Audit

  A management-level review of margin by product, the cash cycle, receivables and costs, ending in indicators you track monthly. Not a statutory audit.

• Business Audit

  Financial Health Audit is part of Business Audit. See the full service if the problem is wider than one piece.

• I cannot see how my business is really performing

  If you steer by bank balance and gut feel, you are driving blind. See how a few trusted numbers, a monthly report and a review meeting fix that.

• Cash is always tight, even when sales look good

  Full order book but an empty account? See how collections, stock, credit terms and timing gaps drain cash, and how a 13-week forecast eases the squeeze.

• How this differs from Clothing stores and boutiques

  Footwear is bought and sold by size run and markdown date; a clothing store has more styles, alterations and a longer, trend-led season.