Consumers feeling ‘discount burnout’ ahead of Black Friday, Cyber Monday, survey finds
As the holiday shopping season approaches, a new report from AlixPartners reveals a concerning trend for retailers: consumers are experiencing “discount burnout.” This phenomenon comes at a time when retailers have traditionally relied on promotions to attract shoppers during challenging economic conditions. With inflation and rising costs affecting household budgets, many consumers have become desensitized to the constant barrage of discounts and sales, leading to a potential shift in shopping behavior ahead of Black Friday and the holiday season.
The report highlights that while discounts have historically been a go-to strategy for retailers to entice customers, the effectiveness of these promotions may be waning. Shoppers are now inundated with offers and sales, making them more discerning and less likely to respond to what they perceive as routine discounts. For instance, major retailers like Walmart and Target have ramped up their promotional efforts in recent years, but the AlixPartners report suggests that this strategy may need reevaluation. Consumers are becoming more selective, seeking value beyond just price cuts, such as quality, sustainability, and unique shopping experiences. As a result, retailers may need to innovate their marketing strategies and enhance customer engagement to stand out in an increasingly crowded marketplace.
Moreover, the report emphasizes the importance of understanding consumer sentiment in this evolving landscape. With many shoppers feeling overwhelmed by the sheer volume of promotions, retailers must find a balance between enticing deals and meaningful offers that resonate with their target audience. The challenge lies in creating a shopping experience that not only attracts customers but also fosters loyalty and repeat business. As Black Friday looms on the horizon, retailers must adapt to these changing dynamics, focusing on building genuine connections with consumers rather than relying solely on discounts to drive sales. This shift could ultimately redefine the retail landscape, pushing brands to innovate and rethink their approaches to holiday marketing in a way that aligns with modern consumer expectations.
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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.
