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However, as consumer backlash against dynamic pricing intensifies — some even threatening to boycott businesses that employ this model — retailers are beginning to reconsider its implementation. In contrast, a promising alternative known as dynamic markdowns is gaining traction.
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 ripple effects will be wide-reaching: rising costs, retaliatory tariffs, strained supply chains and a likely pullback in consumer spending. By staying close to consumers and investing in CRM and loyalty, brands can maintain relevance, strengthen relationships and drive long-term value. That’s where CRM and loyalty shine.
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?
Walking the margin With consumer sentiment falling to new lows in 2024, the challenge on top of mind for many retail CFOs was preserving margin amidst conflicting business needs. That wasnt helped by shrink in-store, particularly consumables, reaching an all-time high.
Key Takeaways Understand Demand Volatility: Recognize the unpredictable fluctuations in consumer demand that affect various aspects of business operations, particularly in retail. Analyze Historical Data: Utilize sales data analysis to identify trends related to seasonality and consumer preferences, aiding in more accurate demand forecasting.
This approach recognizes that consumers today engage with brands through multiple touchpoints, including physical stores, online platforms, mobile apps, and social media. This journey encompasses all the stages a consumer goes through before making a purchase, from awareness to consideration and finally to decision-making.
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.
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]. In particular at Bloomingdales, Bron sees the department store as a chance to up the ante on what matters to todays luxury consumer story, experience and service.
Brands and retailers are getting creative, using tactics like promotional resets, assortment changes and SKU rotation to manage cost pressures under the radar. Mattresses followed a different playbook: staggered markdowns, volatile rebounds, and brand-level strategies that masked broader declines. The result?
They are responsible for building a profitable, well-curated product assortment while ensuring pricing, promotions, and merchandising strategies align with business objectives. Misreading consumer demand could mean investing in the wrong products, missing a key trend, or failing to pull underperforming SKUs before they drain profitability.
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. General Merchandise Manager Brian Burnett, who has been with the company for nearly nine years, has been named chief merchandise officer.
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. On the other hand, if you have a limited time sale or a flash sale where you tell your consumers a specific end date, consumers will be motivated to buy sooner.
A positive impact from this strategic shift will be important for Target, which is eager to turn around the business after slumping sales and consumer backlash. Its latest first quarter earnings in May included a negatively revised full-year outlook and year-over-year declines in merchandise sales and comps. By Retail Dive Staff • Jan.
Despite a positive job market and a stabilized economic environment, most consumers ( 96% ) are looking to save money in the short term, according to a recent study from PwC. But at the same time merchants’ margins are being squeezed, making intelligent pricing and promotions strategies even more critical for success.
BTS purchases certainly are starting earlier: according to the National Retail Federation (NRF) survey conducted by Prosper Insights & Analytics, more than half ( 55% ) of consumers already had started buying school items in July. If [consumers] see [a BTS item] as more of a ‘want’ than a ‘need,’ that would put more pressure on retailers.”
It’s a must do if they want to meet consumers’ increasing demand for brands that prioritize environmental and social responsibility. Retailers across verticals must place a greater emphasis on sustainability to remain competitive and reach the growing number of consumers who support prioritizing these efforts when making purchasing decisions.
Here are some of the issues facing retailers — and ways that they can harness AI-powered pricing and promotions to cope with them productively. Similarly, online shoppers respond to different types of promotional offers, and obviously different promotional vehicles used to reach shoppers when shopping online.
Understanding the difference between trade promotion and consumerpromotion 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.
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?
We want to be the first port of call for brand-conscious and value-conscious Gen Z and millennial consumers,” said Justin Seskin, one of TheDOM.com’s co-founders, along with Thrills director Howard Blend and It Works managing director Paul Downs. . Everyone might go 30 per cent off on their first markdown, but their reach is limited.
In this kind of shopping environment, how should retailers align their promotions and markdowns for the greatest impact? Keeping in mind as well the need to optimize their supply chain fulfillment to meet consumer delivery expectations while managing parcel carrier costs?
The Adobe Index — which analyzes consumer transactions across more than 100 million SKUs in 18 categories — found that consumers have spent more than $541 billion online in the first eight months of this year, from January through August 2021. However, the report indicates that consumer fears about inflation have not been inflated.
Target is taking multiple actions to right-size its inventory, including additional markdowns, removing excess inventory and cancelling orders, as it makes room for merchandise including groceries and back-to-school supplies. Target also is revising its sales forecasts, future promotion plans and cost expectations by category.
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.
This can be done through the effective use of granular data, which will in turn help retailers maintain customer loyalty and keep their revenues steadier, regardless of fluctuations in national consumer spending rates. Even worse, these promotions often fail to clear the desired inventory at all.
COVID-19 has massively influenced consumer behavior, and the economic fallout has had a huge impact on the role of price perception. As a result, consumer behavior has become harder to predict across multiple locations, which makes zone pricing a must for retailers. Within the U.S.,
Returns are essentially the last link to the circle that closes the consumer loop when it comes to a decision.” These include not just costly shipping and processing fees but also the extra promotions or liquidations needed to move excess inventory. When it’s out of season, they have to do markdowns, so it starts a vicious cycle.
This was attributed to increased markdowns at Journeys offsetting an otherwise normalized promotional environment, which led to improved margins at the other businesses. Genesco’s gross margin was 47.3% in Q1 2024, compared to 48.3% in Q1 2023. This is really a newer initiative for us.
As consumers faced higher prices at the gas pump, grocery stores and other places, many cut back on their spending, increasing the competition among retailers. This was especially evident on Black Friday, when many merchants offered steep markdowns to compete. Inflation and the Incredible Shrinking Margin.
Here are some of the issues facing retailers — and ways that they can harness AI-powered pricing and promotions to cope with them productively. Similarly, online shoppers respond to different types of promotional offers, and obviously different promotional vehicles used to reach shoppers when shopping online.
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. You can unsubscribe at anytime. Please select at least one newsletter.
Consumers want more information about the products they buy, and retailers want more visibility into the products their customers buy. For example, a customer can scan a 2D barcode on a package of pasta sauce and instantly view ingredients, allergens, recipes and promotions. Who doesn’t want that? Doesn’t that sound amazing?!
Accenture’s AI.Retail platform — which helps retailers better utilize data and artificial intelligence to optimize common operations such as customer acquisition, pricing and promotions, assortment and supply chain — can now be deployed on Google Cloud.
By creating narrower product assortments and limiting inventory levels — especially for product shipments headed to brick-and-mortar stores —merchants would gain the ability to react more quickly to changing consumer trends, and even potentially reduce their need for markdowns. Richard Maicki. Keith Jelinek.
Promotions influence shopper behavior , and consumers are conditioned to search for the best deals and prioritize brands and retailers who markdown products more often than the competition. Examples of TPRs include the standard dollars-off markdown, limited-time coupons, contests, rebates, and more.
Promotions are a popular technique for brands and retailers to motivate customers and drive sales. You’ll see promotions in all shapes and sizes, from buy one get one free to a percent off to free shipping. . Here’s how leading brands and retailers today create effective sales promotions: . Test and Measure Promotions.
Skyrocketing ecommerce adoption means that consumers today browse an endless number of websites. Time-sensitive or exclusive items can be promoted on an aisle endcap. An item’s popularity or novelty can be communicated via badges that read “best seller,” “newly added,” or even “new markdown.”
at Family Dollar stores, but even discounters are facing cautious consumer spending and employee pay raises that aren’t expected to pay off for some time. We were competitive but measured in our promotions, took strategic markdowns and intentionally did not chase unprofitable sales. during Q4, but they were up 0.6%
Third, the brand can use both data sets to start building a profile of that customer, which will allow them to personalize various touch points, from promotional emails to product recommendations. Second, the brand has explicit consent to collect and use the information. The saying, “Honesty is the best policy,” endures for a reason.
The UK’s cost of living squeeze is making Millennials and younger demographics more sensitive to pricing and promotions, the latest research from antuit.ai , the leader in SaaS Artificial Intelligence (AI) demand forecasting solutions, reveals. Original research of over 2,000 UK shoppers by antuit.ai
Decisions about markdowns, promotions and inventory allocation were limited and made in tried and tested ways. In one example, an apparel brand observed that its customer churn was increasing and attempted to slow the decline with aggressive win-back promotions. Lessons from the Digitization of the Trading Floor.
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