Why do too many retail brands discount early?
21st Dec 2015 • CLAIRE HARPER
So we’re barely days away from Christmas Day, and already the winter sales have kicked in on the High Street, with at least 50% off banners everywhere. Discounting has become the Class A drug of the retail world, with more and more retailers launching new season collections earlier than ever, then heavily discounting within a matter of weeks. Not only does this short term sales strategy lead to low margins and financial instability, but also long term brand damage – what used to be highly respected fashion and lifestyle brands have now become little more than discount outlets.
But what about the customer? Unfortunately it’s a slippery slope, and once brands start to chase the short term wins rather than investing in the long term future of their brand, there’s rarely any turning back.
Retailers across every sector of the industry have spent the last year teaching customers to only buy on sale. UK retail now has too many companies, with too many stores and too many websites, chasing too few customers. A excess of supply over demand is forcing the majority of the industry to resort to price cutting in order to put money in the tills.
This year IndiaCoco launched our flagship store at Trinity Walk Shopping Centre, Wakefield and our neighbours are national retailers. As a growing independent retailer we are holding our nerve, protecting our customers, quality products and strong retail values.
Our future retail strategy is focused on rolling out to key locations and delivering on our brand values. All we can do is build our market share by focussing on what we can control – innovative retailing, clever technology, outstanding service and a great product range. We feel the retailers that will fare best in these challenging times are those who commit to full price with collections that are confident, on-trend, merchandised with care and appropriately priced.
We look forward to launching our Winter Sale on Boxing Day. We believe that is how it should be, so that’s what we’re going to do.