Markdowns: What Macy's, Neiman and Express Disclose About Price Wars
" It used to be that inventory control was the unattainable goal in retail; today it is putting a price on what consumers are willing to pay.
A number of retailers use loyalty program data to deliver time-sensitive, digital (app-based) promotions tailored to a specific shopper’s purchase preferences... As digital technologies advance and become more widely accepted, it’s not unrealistic to expect the mass-market discounting structure that has dominated retail for decades to fall from favor.
The need to change pricing structures is evident across sales floors and business sections nationwide. According to a recent report in the Washington Post, a range of merchants, from the tony Neiman Marcus to trendy Express, is pulling back on discounts... Macy’s, meanwhile, is exploring the feasibility of discount outlets through which it can ship out its off-price or post-season fashions.
While both strategies may work well, they won’t be fully optimized unless they recognize the role of personalized pricing as a competitive device... "
Read the full article at Forbes.
Image Credit: Marketing Minds Academy