News

Big discounts hit way before Black Friday, Cyber Monday

November 28, 2017

Retailers didn't wait until the busiest shopping weekend of the year to discount items as a new EDITED report reveals 48 percent of the U.S. online apparel retail market was at an average discount of 46 percent, with big price cuts hitting weeks before Thanksgiving even arrived.

The online consumer spending analysis also showed product sellouts increased 102 percent compared to last year, with accessories, sneakers and outwear getting the heaviest price reductions, according to a press release.

"2017 has been a tumultuous year for the retail sector, characterized by record-breaking brick and mortar retail bankruptcies and store closures on the one hand, and skyrocketing e-commerce sales on the other," said Katie Smith, retail analysis and insights director at EDITED, in the release. "While the retail industry has banked on aggressive discounts weeks before Black Friday and Cyber Monday to boost consumer spending, they need to make sure that this does not sacrifice margins in the long term."

Additional findings include:

• Earlier discounts this season: While 6 percent of the apparel retail products sold out the week before Black Friday last year, this figure rose to 7 percent the week prior Black Friday in 2017, an indication that bargains were available ahead of the holiday season.
• Price drops started in September: Retailers averaged 20 to 30 percent for initial discounts in September this year, with 42 percent of initial discounts at 40 percent or higher. The greatest level of discounts were with jewelry, bags and watches.
• Top sellout products: The items that sold out the quickest these holidays were accessories (29 percent), tops (20 percent), footwear (17 percent), dresses (8 percent) and bottoms (8 percent).