Pricing has long been considered the biggest lever for retailers when competing for market share and attracting customers, particularly as they competed with Amazon. However, COVID has fueled an enormous shift within consumer expectations, and has prioritized safety and convenience often over pricing. We’ve heard from the industry that consumers are still shopping the same way they did during the holidays, rather than looking for big post-holiday sales. And smart retailers have already started to pull back.
As an example, while the holiday showed deep discounts early-on to incentivize consumers to start shopping early, data by Salesforce (CRM) published late last year showed that retailers started pulling back in December, with the global average discount rate dropping to 18 percent on average for the first two weeks of December down from the 28 percent average global discount rate offered on Cyber Monday.
This was a smart move, and likely helped retailers in-line with their consumer expectations capture more revenues during the holidays.