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is at an all-time high, with one in four Americans struggling to afford basic groceries due to rising food costs – a situation only exacerbated by inflation. In contrast, a promising alternative known as dynamic markdowns is gaining traction. Food insecurity in the U.S. Many view these pricing strategies as “milking” the customer.
Well, we’ve all fallen for such a trap, and promotions can sometimes feel addictive to a point where we purchase things that we don’t really need. That’s the magic (and madness) of retail promotions, which is a game as unpredictable as roulette. They want to boost their revenue, but sometimes promotions can destroy brands.
The Black Friday Cyber Monday sales period has expanded to become ‘Black November’ this year, with many retailers and brands starting their promotions earlier than ever. However, many consumers only appear willing to buy if there’s a significant markdown involved, so where does that leave retailers?
For example, when you shop online at Amazon or ASOS, you’ll notice that the recommendations are specific to your browsing and buying behaviour. This helps retailers optimise inventory levels, staffing, and promotions for smoother operations and waste reduction. It also allows retailers to tailor pricing at an individual level.
Shifts in consumer behaviour towards big promotions presented challenges to margin integrity, as Krista Diez-Simson, CFO of Taking Shape, pointed out. Though promotional cycles were a boon for sales, Diez-Simson said that managing the tension between cashflow and margin became her biggest challenge in 2024.
Debenhams Group (formerly known as Boohoo Group) has teamed up with artificial intelligence platform UiPath to implement AI at scale across its product pricing and promotions strategy. 11/03/2025 x 3:41 PM Historically, manual efforts resulted in reactive, trial-and-error markdown cycles, said Debenhams Group.
Marketing Strategies: Utilize social media and eBay promotions to boost your store’s visibility and drive sales, engaging effectively with your target audience. With millions of potential buyers at your fingertips, it’s an exciting way to turn your passion for selling into a profitable venture.
Consignment Process: Sellers select items based on quality and demand, retailers showcase these items, and payment is made to sellers after a sale, typically at a commission rate of 40% to 60%. Customers often find unique items at competitive prices, attracting them to consignment stores.
Whether you’re selling sneakers, sofa sets, or fine jewelry, carrying too much stock ties up cash, eats up space, and leads to markdowns. Experiment with markdowns, flash sales, or multi-buy offers like BOGO or “Buy 3, Get 1 Free.” A well-executed sales event can shift perception and stock at the same time.
It’s December, so we know that you have already made a list and checked it twice, but here’s a refresher, just in case… EVENTS ARE ESSENTIAL Customers need a reason to visit your store so plan on having at least one major and two minor in-store events in December. MASTER MARKDOWNS Plan now for your post-holiday markdowns.
The award programme hand-picks those technologies that have the power to unlock competitive advantage and digitally transform retailers capabilities whether its AI solutions that drive efficiencies or power promotions, to tech that digitally connects the shelf-edge and innovations that optimise product information.
For mid-size retailers, real-time updates are particularly valuable during peak sales seasons or promotions when stock levels fluctuate rapidly. Additionally, real-time inventory management makes it easier to identify slow-moving stock and make adjustments to promotions or markdowns to clear it out.
Understanding the customer journey is crucial for successful omnichannel merchandising, as it allows businesses to tailor their strategies to meet customer needs at every touchpoint. By doing so, you can tailor your messaging and offerings to meet their needs at each stage.
Seasonality: Seasonal products often experience sharp demand spikes at specific times of the year. Recognize patterns related to seasonality, promotions, and shifts in consumer preferences. They implemented responsive marketing tactics, aligning promotions with customer preferences detected through social media engagement.
13 at the NRF Big Show in NYC, offering a rare opportunity to hear from all three brands in unison, particularly as the company continues to face activist pressure. Weve seen three consecutive quarters of improvement in our net promoter scores, in addition to three consecutive quarters of comp store sales growth [at these 50 stores].
Promotional calendars: Planning key campaigns, promotions, and markdown events throughout the year to drive sales and clear seasonal inventory. For example , A specialty apparel retailer may align on a KPI such as 8% revenue growth while keeping markdowns below 15%, using the AOP as a performance framework for every team.
The Complex Role of a Category Manager Category Managers sit at the center of a high stakes balancing act. They are responsible for building a profitable, well-curated product assortment while ensuring pricing, promotions, and merchandising strategies align with business objectives. Every product decision carries weight.
You can unsubscribe at anytime. Published July 11, 2025 By Howard Ruben post share post print email license Rack Room Shoes announced the promotions of Chief Merchandise Officer Brian Burnett and Chief Digital Officer Molly Hartney. You can unsubscribe at anytime. Please select at least one newsletter.
Utilize Coupons and Promotions: Implement Amazon coupons strategically and target Amazon Prime members to maximize your savings and enhance customer engagement during the sale. Other tech items from brands like Dyson also feature substantial markdowns, offering you the latest in small business technology.
You can unsubscribe at anytime. You can unsubscribe at anytime. Please select at least one newsletter. It could be an attempt to broaden revenue streams, plot the location of a future store or, at its simplest, take advantage of a good deal. You can unsubscribe at anytime. Please select at least one newsletter.
You can unsubscribe at anytime. A smart home hub, like the company’s Dirigera, is required to add Matter-enabled products to a home setup. “Until now, smart home technology hasn’t been easy enough to use for most people, or affordable enough for many to consider,” David Granath, range manager at Ikea of Sweden, said in a statement.
Or wondered how retailers decide if their promotion will be BOGO or 25 percent off? They are also a way to ensure markdowns and promotions are effective. Selling a limited quantity of items in your promotions creates a sense of urgency. Another promotion that works well is offering a free gift with purchase.
You can unsubscribe at anytime. The retailer also hinted at additional openings this October. Target has also invested in building out shop-in-shops with Ulta Beauty, though those expansion efforts were paused as of April , and in February announced it would develop Warby Parker shop-in-shops at five stores this year.
Beyond the Sales Floor: Why Fitting Room Insights Matter Its tempting to celebrate total sales or overall conversion rates – who wouldnt be thrilled to see a new product launch sell through at 75%? When store teams have fitting room insights at their fingertips, they can offer more meaningful guidance.
But at the same time merchants’ margins are being squeezed, making intelligent pricing and promotions strategies even more critical for success. Now, it’s all about how you reach consumers through tailored promotions.”
“With so many things happening over the last two years — the pandemic, political pressures, social justice protests, geopolitical and supply chain challenges — everyone stayed at a perfect moderate level of anxiety,” said Ericka McCoy, Chief Marketing Officer at analyst firm Resonate in an interview with Retail TouchPoints.
These insights are a powerful way to gauge consumer demand for sustainable products with current and past sales data, identify the most profitable promotional strategies, and minimize markdowns and waste from the start. Increase promotional effectiveness. Better track, monitor and gauge customer demand.
As the pandemic moves into new phases, responses lurch wildly between complete lockdowns to fast-track reopenings and back to lockdowns, at different cadences in every country, state or even locality. Here are some of the issues facing retailers — and ways that they can harness AI-powered pricing and promotions to cope with them productively.
Altering your price, particularly through markdowns, can be a smart strategy, but only if done correctly. Unsuccessful or excessive markdowns can lead to staggering losses in terms of missed revenue and a lower margin on your goods. What are Retail Markdowns? How to Implement a Markdown Strategy. Don’t believe us?
presidential election, inflationary pressures and fluctuating interest rates, retailers must adopt a more refined, agile and data-driven approach to pricing and promotions. Fine-Tune Competitive and Promotion Strategies Retailers need to first identify key categories or regions that drive traffic, build baskets and boost profits.
Your markdown SKUs are live, but how are they tracking? Now is the time to check how your markdown performance is tracking against your retail markdown strategy keeping inventory management top of mind. Full price vs markdown mix. Review performance of current markdown clearance stock. Markdown cover.
In addition to this timing variation, over 60% of shoppers plan to do their browsing online, yet 85% expect to buy at least one product in a store. In this kind of shopping environment, how should retailers align their promotions and markdowns for the greatest impact?
The general Deals page features promotions and markdowns in a range of top holiday categories — including apparel, electronics, toys and beauty — from a wide variety of merchants, ranging from big-box stores and multi-brand retailers to DTC brands and local stores.
Understanding the difference between trade promotion and consumer promotion is crucial for any business seeking to maximize its market impact and sales potential. These two promotional strategies, while aiming to stimulate demand and increase sales, target distinct audiences and employ different methods. What is Trade Promotion?
As part of the new multiyear agreement — which builds upon a partnership that started in 2016 — Academy will use the Revionics Base Price and Markdown solutions to not only optimize its pricing strategy but better manage inventory levels throughout the product lifecycle.
As other sectors, including travel and hospitality, experienced online commerce surges, the retail market shifted at a more leisurely pace. It’s not surprising, then, that shopper responsiveness to digital promotional offers has increased, with 55% saying they are extremely or very likely to respond to a smartphone or mobile app offer v.
You can unsubscribe at anytime. Dive Brief: Amid efforts to recapture market share, Lululemon is increasing markdown activity at “alarming rates” alongside strategic merchandise shifts that pose a risk to earnings, according to a Wednesday research note from Jefferies analysts shared with Retail Dive.
In a perfect retail world, markdowns wouldn’t be necessary and every item would sell at full price within weeks of being in store. This is where markdowns come in handy, as the demand for a product diminishes, sales can encourage shoppers to purchase an item they wouldn’t have considered buying at full price.
At Mejuri, we view data as a strategic asset, especially when it helps us create more compelling customer experiences,” said Majed Masad, COO at Mejuri in an interview with Retail TouchPoints. “Shopper behavior is also less predictable today, requiring more creative experimentation in merchandising and marketing.
Savvy retailers are focusing more heavily on determining demand by geographic zones, using local data to inform prices, promotions and markdowns based on real-time consumer behavior. If you look at grocery stores as an example, many retailers were forced to sell eggs at a loss because their wholesale costs increased dramatically.
Seskin, whose father, JD Sports Australia chairman Hilton Seskin, is a strategic advisor to TheDOM.com, declined to name the brands that will be available at launch, but said the team has been “hand-picking” the ones it wants to work with. “We’ve Everyone might go 30 per cent off on their first markdown, but their reach is limited.
Comparable sales at Journeys plummeted 14% , dragging the company’s overall comparable sales down 5% despite positive results from the Schuh and Johnston & Murphy banners. Inventories increased 17% year-over-year at these banners, but the increase was attributed to fueling rapid growth. Genesco’s gross margin was 47.3% in Q1 2023.
As the pandemic moves into new phases, responses lurch wildly between complete lockdowns to fast-track reopenings and back to lockdowns, at different cadences in every country, state or even locality. Here are some of the issues facing retailers — and ways that they can harness AI-powered pricing and promotions to cope with them productively.
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