Retailers must abandon one-size-fits-all discounting

Suzy Ross

Barely 10 years ago, consumers were delighted with twice-yearly, end-of-season Sales. Fast-forward to today and there seems to be a never-ending cycle of price reductions – ever-earlier seasonal Sales, continuous ‘promos’, discounting disguised as loyalty programmes, Black Friday, Cyber Monday… the list goes on.

But the flipside is that retailers are struggling and many of our high streets are dying. Short-term blunt ‘discount matching’ to stay competitive has profoundly changed consumer behaviour. Retailers are realising that they have trained existing customers to shop less profitably and a large proportion of digital marketing spend is directed at acquiring fickle, disloyal new customers.

However, discounting is not going to go away. So how can retailers regain control of it and begin to drive more sustainable, long-term, profitable growth? 

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