Visitors are caught in the reflection of a store offering 50% off on all items on the Third Street Promenade in Santa Monica on July 16, 2024.\u00a0<\/p>\n
Genaro Molina | Los Angeles Times | Getty Images<\/p>\n
A steady stream of promotions across the fashion industry has left consumers suffering from “discount burnout” ahead of Black Friday and Cyber Monday, according to a new report from consulting firm AlixPartners released Wednesday.\u00a0<\/p>\n
The firm surveyed over 9,000 U.S. consumers on their preferences and priorities across 140 retailers and nine fashion sectors. The report found shoppers see price increases as “inevitable,” and cost has become less important to them when they are deciding whether to buy new clothes or accessories.<\/p>\n
On average, the value of importance respondents assigned to price dropped 13% compared to last year and fell across all sectors except for luxury and beauty, the survey found. Meanwhile, 30% fewer consumers ranked sales and finding the best deal as “very important” compared to last year, even in the off-price sector, where deal hunting fell from the\u00a0fell from the top factor respondents were considering to number 19<\/p>\n
In the aftermath of President Donald Trump’s tariff increases<\/a> on dozens of countries in April, retailers leaned on discounts and promotions to alleviate consumer concerns that prices were rising because of trade policy, said Sonia Lapinsky, the head of AlixPartners’ global fashion practice and the report’s author. But now there’s “fatigue” around promotions and shoppers are looking for more than just a discount, she said.\u00a0<\/p>\n Consistent pricing between stores and online, value for the money and quality are among the top things shoppers are prioritizing when spending, she said. They’re also looking for a better store experience. While more than 60% of shoppers surveyed plan to make over half of their fashion purchases in stores this holiday, the amount of time shoppers are spending in stores dropped 3% and basket size fell 5% over the last two years, the report found.\u00a0Percent change in avg. weekly visits per store, dwell time and basket size1. Cohort of 50 U.S. retailers, first 20 weeks of 2023-2025<\/p>\n “We have higher foot track traffic and lower baskets. Something’s missing that they’re not converting,” said Lapinsky. “So what is it about that experience in-store that’s not helping them convert?”<\/p>\n The findings come as the retail industry prepares for a holiday shopping season that could be weaker<\/a> than previous years amid falling consumer sentiment<\/a>, an uncertain job market<\/a> and persistent inflation<\/a>. The tough economic backdrop coloring the holiday season is putting a renewed focus on execution, quality and brand strength, especially as many retailers raise prices<\/a> to offset the cost of tariffs.\u00a0<\/p>\n Lapinsky said the survey’s findings are a “warning” for retailers that discounts won’t be enough to drive demand this holiday season.\u00a0<\/p>\n “They’ve always had this lever of discount to drive traffic and get folks into the store, but when you’re compounding it with tariffs and their need to raise prices \u2026 that lever for them is going to become even more risky,” said Lapinsky. “It’s not necessarily going to work the way it has, because of this fatigue.”\u00a0<\/p>\n The luxury sector, where price rose in importance for shoppers as a factor when they are spending, provides a cautionary tale for the retail industry, the report said. Over the last few years, brands “dramatically raised prices,” the firm said, citing Chanel’s decision to increase the price of one of its bags from $5,800 to $11,300 between 2019 and 2025 as an example.\u00a0<\/p>\n The sudden spike led consumers to pull back from the sector and trade down to premium brands “that felt more rationally priced,” the report said.\u00a0<\/p>\n “The same dynamic applies across other sectors,” the report said. “Retailers who attempt to hold the line on pricing by reducing quality risk losing credibility.”<\/p>\n","protected":false},"excerpt":{"rendered":"Visitors are caught in the reflection of a store offering 50% off on all items on the Third…\n","protected":false},"author":3,"featured_media":323799,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[9167,64,81,69,11731,67,132,68],"class_list":{"0":"post-323798","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-breaking-news-business","9":"tag-business","10":"tag-business-news","11":"tag-donald-trump","12":"tag-retail-industry","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115417798798553872","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/323798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=323798"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/323798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/323799"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=323798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=323798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=323798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}