As Retail Sales Grind To A Halt, Brands Weigh The Pros And Cons Of Discounting
Retail is in a tough position. With a vast swathe of the U.S. stuck at home and retail stores closed, brands are strategizing to get as many people shopping online as possible. They also need to sell off the inventory they have so it doesn’t become a sunk cost sitting in a warehouse. Many are turning to heavy discounts. Brands and retailers big and small have cranked up discount percentages in the past week as they seek to encourage customers to keep shopping through this rough period, and many brands aren’t happy about the heavily promotional environment that is set to become the norm. Luxury brands especially have prided themselves on rarely discounting their products. But these are extraordinary times and brands across the board are doing what they can to stay afloat. On the small-business and DTC side, fashion companies have been much more open to discounts. Read more at Glossy.
