ANI Horizon · Guides · Merchandising

Reading a Sell-Through Report

Method · Horizon Education

What it does. Turns a sell-through report — the weekly table every retailer produces — into three decisions per style: reorder, hold, mark down. The report is data; the method is the reading.

Inputs. Per style (or option): units received, units sold this week and to date, units on hand, weeks on sale (week of life), current price and any markdown taken. Ideally also: the category's sell-through target by week and the season's end date.

Steps.

1. ST% to date = sold to date ÷ received. Full-price ST% separately if markdown units can be split out.

2. WOC = units on hand ÷ average weekly sales over the last 3–4 weeks — not the lifetime average, which hides a slowdown.

3. Place the style on the week-of-life curve: compare its ST% with what the category expects at this week (for example 50% by week 8 in a 16-week season). Ahead, on track, behind.

4. Compare WOC with the weeks remaining in the season. WOC below the remaining weeks — stock runs out before the season ends; WOC above — stock outlives the season.

5. Decide. AHEAD + WOC short → reorder, if lead time allows; otherwise protect the best sizes. ON TRACK → hold; check sizes and stores. BEHIND + WOC long → mark down early; set the depth from how far behind, not from how much stock. BEHIND + WOC short (rare) → sells slowly but will clear: hold, do not reorder.

6. Write one line per style: the decision and the number that drove it. A decision without its number is a preference, not a call.

Common errors. Reading ST% without week of life. Using lifetime average sales for WOC after a slowdown. Reordering on total ST% when only one size sells — check the size curve first. Marking down late "to give it one more week": the week costs more than the markdown.

What a good output looks like. A table with the columns above and a decision column, then three sentences on the range as a whole: where the money is stuck, where it is running out, what the buy got wrong. The reader should be able to act without opening the raw report.

Put it to work: ask Horizon a question about your own market and get a computed answer, with sources and the calculation shown.

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