LEGARDIA
Data Analytics · Retail
Capital locked in unsold inventory — and the discount action plan to recover it.
Dead Stock SKUs
757
Units Stuck
173,589
Capital at Risk
€16.99M
Recoverable
€10.80M
64% recovery rate
The Problem
757 SKUs across SS25 are classified as dead stock — sell-through below 20%. At full price, €16.99M is locked in unsold units that may never move.
The Trade-off
Applying the recommended discounts recovers €10.80M in cash at a margin cost of €6.19M. H3 (Mann-Whitney, p<0.0001) proves discounts increase units sold 2.5×.
The Action
Apply 30% discount to 563 SKUs where sell-through ≥ 15%. Apply 50% to 194 SKUs in critical dead-stock territory. Act now — waiting costs margin and cash flow.
Discount Strategy
563 SKUs · 116,916 units affected
Sell-through 15–20% — moderate stimulus to move units before season end.
Recovery
€8.07M
Margin Cost
−€3.46M
Recovery Rate
70%
194 SKUs · 56,673 units affected
Sell-through < 15% — urgent clearance to free warehouse space and recover any cash.
Recovery
€2.73M
Margin Cost
−€2.73M
Recovery Rate
50%
Statistical Evidence
245 units
Discounted avg sales
97 units
Non-discounted avg
773,990
Mann-Whitney U
−0.6521
Effect size (r)
H3 proven with Mann-Whitney U test (non-parametric, p<0.0001). Discounted SKUs sell 2.5× more units on average. Effect size r=−0.6521 is classified as large — this is not correlation, it is statistically significant evidence.