Consumers Feeling ‘Discount Burnout’ Ahead of Black Friday
- 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...
- 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.
- consumers on thier preferences and priorities across 140 retailers and nine fashion sectors.
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Discount Fatigue: Why Shoppers Are Tuning Out Retail Promotions
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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.
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.
Genaro Molina | Los angeles Times | Getty Images
The firm surveyed more than 9,000 U.S. consumers on thier 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.
On average, the value of importance respondents assigned to price dropped 13% compared with last year and fell across all sectors accept for luxury and beauty, the survey found. Simultaneously occurring, 30% fewer consumers ranked sales and finding the best deal as “very critically important” compared with last year, even in the off-price sector, where deal hunting fell from the top factor respondents were considering to number 19
The Impact of Tariffs and Promotional Fatigue
In the aftermath of President Donald trump‘s tariff increases 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.
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.
Shifting Consumer Priorities: A Deeper Dive
The AlixPartners report highlights a significant shift in consumer behavior. For years, retailers have trained consumers to expect a sale. This