The owned brand in beauty discounted more than twice as hard as usual, and the national brands beside it discounted less
The owned brand in beauty discounted at of its revenue this quarter. The national brands on the same shelves discounted at , and they sold more units at that held price, not fewer. That leaves a gap between the two banners of . The owned brand realised of its own ticket against the national brands' , and its gross margin fell to while theirs rose to . Skincare and cosmetics account for of the gap and the beauty-enthusiast shopper for .
So what? The owned brand is the part of the shelf the business keeps most of the price on, and a quarter of discounting took the top off it. Whatever the reason turns out to be, the ticket is lower and the shopper has seen it, so next season starts from here.
7.8 vs 3.3%
more than twice what it normally gives
1.0 vs 3.0%
a third of what they normally give
6.8 vs 0.3 pp
they normally sit on top of each other
92.2 vs 96.7%
of its own ticket
99.0 vs 97.0%
and they sold more at it
37.5 vs 42.0%
the same points the markdown took
Markdown Rate · both banners against the rate each normally discounts
The same category, the same shelf, the same quarter.
Beauty · the owned brand
Beauty · the national brands
The owned brand discounted at and the national brands at . That leaves a gap of , where the two normally sit within a third of a point of each other. Neither rate on its own is the finding. The distance between them is, on the same category, shelf and quarter.
The same three readings for each banner. Cost of goods did not move in either.
| Reading | The owned brand | The national brands |
|---|---|---|
| Markdown Rate | 7.8% against its own 3.3% | 1.0% against their own 3.0% |
| Price Realization | 92.2% against its own 96.7% | 99.0% against their own 97.0% |
| Gross Margin % | 37.5% against its own 42.0% | 32.0% against their own 30.0% |
| What the price bought | no extra units | more units at the held price |
| What is left | a shelf held at the owned brand's expense | a supplier that stopped funding clearance |
The owned brand realised of its own ticket while the national brands realised , and they sold more units at that held price, not fewer. Gross margin followed exactly: the owned brand fell to and the national brands rose to . The cost of the goods did not move, so every point of price given up is a point of margin gone.
Markdown Rate · which cut of beauty carries the gap between the banners
How much of the 6.8-point gap each cut accounts for. None of it is the expected share.
The line on each bar is that row’s own expected level. The scale runs from 0 to 100.
Skincare and cosmetics account for of the gap between the banners, and the beauty-enthusiast shopper for . The gap is not spread across the department. It sits in two categories and on one shopper, which is a small enough place to go and look at.
37.5 vs 42.0%
on the highest-margin book in beauty
92.2 vs 96.7%
and it bought no extra units
6.8 vs 0.3 pp
the distance to close at contract
The gap is the reading, not either rate
The owned brand discounted at and the national brands at , a gap of where the two normally sit within a third of a point.
Why it matters: One banner's markdown rate is a number on its own. Two banners on one shelf moving this far apart is a difference somebody has to account for.
The brands that did not discount sold more
The national brands realised of their ticket and sold more units at that held price, not fewer, while the owned brand realised .
Why it matters: Whether the discount moved the owned brand's own units is not on this page. What is on it is that the brands which held their price sold more of theirs.
It sits where the two banners compete for one shopper
Skincare and cosmetics carry of the gap and the beauty-enthusiast shopper carries .
Why it matters: A gap spread evenly across a department points somewhere different from one concentrated on two categories and a single shopper.
What did those vendors fund in clearance last year against this one?
Puts a number on the promotional support that was withdrawn.
Which owned-brand lines held margin without discounting?
Finds the ones where the shelf can be defended without paying for it.
How much did those vendors spend on the retail-media network that quarter?
Says whether the margin they held is recoverable through co-op rather than price.
Did the marketplace take rate move on the same categories?
Tests whether the premium sits in vendor margin rather than anywhere the business earns.
Which other departments show the banners drifting apart?
The same read, run before the next contract cycle.