Consumers feeling ‘discount burnout’ ahead of Black Friday, Cyber Monday, survey finds
As the holiday shopping season approaches, retailers are facing a significant challenge: consumers are experiencing “discount burnout,” according to a recent report from AlixPartners. This phenomenon arises from an overwhelming saturation of promotions and discounts that have become commonplace in the retail landscape, especially during economically challenging times. Traditionally, retailers have relied on aggressive pricing strategies to entice consumers, particularly during the holiday season. However, with inflationary pressures and economic uncertainties persisting, shoppers are becoming desensitized to the barrage of sales and promotions, leading to diminished effectiveness of these strategies.
The AlixPartners report highlights that nearly 70% of consumers feel overwhelmed by the number of promotions they encounter, leading many to question the value of discounts. This “discount fatigue” is particularly pronounced as retailers ramp up their marketing efforts ahead of Black Friday, a critical shopping day that often sets the tone for holiday sales. For example, many consumers reported feeling that discounts are not as compelling as they once were, with some even suggesting that they would prefer fewer promotions if it meant a more genuine shopping experience. Retailers are now tasked with finding innovative ways to engage consumers without falling into the trap of discounting their products into oblivion.
To combat this trend, retailers are being urged to rethink their promotional strategies. Instead of relying solely on discounts, they may need to focus on enhancing the overall shopping experience, offering exclusive products, or providing personalized services that resonate more with consumers. Creating a sense of urgency through limited-time offers or emphasizing the quality and uniqueness of products can also help retailers stand out in a crowded marketplace. As the holiday season approaches, it will be crucial for retailers to strike a balance between appealing to budget-conscious shoppers and maintaining their brand value, ensuring that promotions feel meaningful rather than routine. In a landscape where consumers are increasingly discerning, the challenge lies in capturing their attention and loyalty without overwhelming them with discounts.
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Retailers have long leaned on promotions in tough economies, but consumers are feeling “discount burnout” before Black Friday, a report from AlixPartners found.
Eric
Eric is a seasoned journalist covering Business news.
