Context: Markdown percentage reflects how well the organization keeps pace with demand, with pricing flexibility narrowing the longer a response lags.

Challenges: Sell-through softens in pockets, size and colour curves bend, and regional imbalance grows, but decisions stall because ownership is split across merchandising, pricing, and supply, so by the time markdowns are approved, margin is already gone.

Solution: The Demand Inventory Risk Advisor Agent, an AI agent built using Microsoft Copilot Studio, monitors sell-through and inventory exposure as they drift beyond tolerance and intervenes during pacing and repricing decisions, flagging risk before allocation and price are no longer adjustable.

Impact: Retailers adopting this approach see teams stop waiting for end-of-season clearance to admit demand has moved, with margin preserved through timing discipline rather than deeper discounts.