Retail was all about promotions in 2016, reveals study
Feb. 1, 2017
Nearly half, 44 percent, of orders in 2016 were sold on a promotion and 67 percent were sold on a markdown, according to new data from the DynamicAction Retail Index.
"This rampant promotional and markdown activity led to a 24 percent margin reduction for North American retailers in 2016. Retailers are also entering 2017 with merchandise returns on the rise, already up 23 percent for the year versus January 2016," state a release on the report.
Additional key insights:
"The consumer mindset has been hardwired to wait for a sale, and retailers continue to reinforce this wiring with ceaseless promotions in all channels," said Sarah Engel, SVP of global marketing for DynamicAction, in the release. "As we enter 2017, retailers are more aware than ever that they need to re-engineer their strategies to balance customer expectations with the profit demands of the business."
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