Shoe sale during the “Back to School” promotion at a shoe store in Fenton, USA (Photo: cleveland.com)
Discounts lead to price wars and bankruptcy of retailers
About 45% of women decide to go to the store only after they see information about a discount on goods from 40%. At the same time, 39% of consumers are ready to go to another store to find out if there is a sale there, such data are provided by the American publication Footwear News with reference to the American analytical agency First Insight Inc.
Statistics were presented at the WWD Men's Wear Summit Forum, in which Jim Shi, head of the commercial department of US research firm First Insight Inc, said that waiting for discounts from consumers, both men and women, was becoming a real problem for retail. The report of First Insight Inc says that the endless implementation of discount promotions resulted in "fatigue from sales" on the part of consumers, who now rarely expect to purchase goods at full price.
Analysts at First Insight Inc considered all cases when retailers are ready to announce discounts - such as one-day sales, anniversaries, Black Friday, Cyber Monday, return to school and other significant events. Given all these endless days of discounts, experts are wondering - why might a consumer even want to buy a product at full price?
In the United States, in the past two years there has been a surge in bankruptcies in the fashion retail market, and, according to First Insight Inc experts, price wars play an important role in weakening the business of retail players.
About 45% of women decide to enter a store only after they see information about a discount on goods over 40. At the same time, 39% of consumers are ready to go to another store to find out ...
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