News

Smaller discounts, fewer discounted products this holiday season

November 15, 2016

A new report predicts there will not be as many product discounts, or holiday promotional discounts, this holiday season and it's all part of a new retail strategy to provide consumers with the 'right' product than a slew of options.

A new Upstream Commerce report, according to Luxury Retailer, also notes the new strategy will bring known challenges.

"We believe it's a 'race to the bottom', i.e. retailers are looking at what others are doing, and do not feel they can raise prices back up when the others do not," said Amos Peleg, CEO and co-founder of Upstream Commerce, according to Luxury Daily. "While retailers succeed at selecting better products for promotions, as we show, they still are challenged with controlling timing and duration of promotions, as they feel the market is dictating these."

The Upstream Commerce report analyzed 133,340 women's apparel products from 2013 and 165,133 from 2014 that were discounted by top retailers including Saks Fifth Avenue, Macy's and Amazon.