Average Unit Retail (AUR) Formula
How apparel teams calculate average unit retail and why AUR drift against plan is the fastest read on markdown intensity.
What AUR measures
AUR is the average selling price of a unit after promotions and markdowns. It is the net of your pricing architecture and your discount decisions.
AUR = Net Sales ÷ Units SoldAUR drift against plan is a direct signal of markdown intensity, mix shift toward lower-priced styles, or promotional over-reach.
Worked apparel example
$540K in net sales on 7,500 units sold.
AUR = $540K ÷ 7,500 = $72.00
If the plan AUR was $78, the brand is realizing $6 less per unit — a 7.7% gap. Multiply by units and that is the margin dollars disappearing into promotions and markdowns.
AUR is $72.00 per unit sold. Drift down against plan often signals heavier markdown than expected.
Failure modes we see
AUR only reviewed against LY. AUR comp-vs-LY looks flat. AUR comp-vs-plan is down $5. The AUR was supposed to grow through price architecture changes — it did not. Plan-basis comparison catches the miss that LY comparison hides.
How RetailNorthstar handles AUR
AUR tracks live at category, class, and channel level against both plan and LY. Decomposition shows how much of an AUR miss came from mix, how much from markdown, and how much from promo discount.
Related formulas
- Average Unit Cost — the cost side
- Units per Transaction — basket-size context
- Markdown % — the primary driver of AUR drift
See AUR decomposed live — mix, markdown, and promo contribution to every basis point of drift.
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