What does "markdown" refer to in fashion merchandising?

In fashion merchandising, "markdown" specifically refers to reductions in the original selling price. This practice is commonly employed to increase sales, clear excess inventory, or respond to changing market conditions. Retailers often implement markdowns to attract customers who may be hesitant to purchase items at full price.

When a retailer marks down prices, it can stimulate demand for items that might not be selling well, making them more approachable for consumers. Markdowns can also enhance seasonal sales strategies, helping to make room for new inventory. Understanding the concept of markdowns is crucial for fashion merchandisers, as it directly impacts profit margins, sales strategies, and inventory management.

The other choices involve different pricing strategies that do not align with the traditional understanding of markdowns, emphasizing price increases or strategies without direct relevance to markdown practices.