What indicates how effectively merchandise sustains its markup?

Maintained Markup is an important metric that reflects how effectively merchandise sustains its markup after accounting for markdowns, returns, and allowances. It gives a clearer picture of the profitability of products sold, as it evaluates the difference between the sales price and the cost of goods sold over a specific period. This metric is crucial for retailers because it helps assess the effectiveness of pricing strategies and sales performance.

By focusing on maintained markup, businesses can determine how much profit they retain on their merchandise after various adjustments. A high maintained markup indicates that a retailer is successfully managing its pricing and inventory strategies, suggesting efficient operations and strong sales performance.

Other options reflect different aspects of retail performance. For instance, Gross Margin refers to the difference between sales and the cost of goods sold but does not consider markdowns or returns. Inventory Turnover measures how quickly inventory is sold and replaced over time, reflecting sales efficiency rather than markup sustainability. Sales Volume indicates the total number of units sold, which is important for overall sales performance but does not directly measure how effectively merchandise maintains its markup.