Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Add value rather than simply slashing prices

The prevalence of discounting and Sales on the high street is doing much to stimulate debate about whether or not fashion retailers should be more strategic in this approach or adopt new pricing (Drapers, January 13).

The prevalence of discounting and Sales on the high street is doing much to stimulate debate about whether or not fashion retailers should be more strategic in this approach or adopt new pricing (Drapers, January 13).

Last year, few retailers held out until Boxing Day at full price, and going by the flash Sales and promotions we flagged up through SalesGossip, there were around 100 pre-Christmas December Sales in London alone.

Research we conducted in 2011 suggested that most respondents bought more than 30% of their wardrobe during the Sales. Currently, more than 35% of all fashion sales are made on promotion and the consumer has come to expect products to be discounted.

But a race to the bottom isn’t the answer. It’s well known that the price-cutting spiral can devalue a retailer’s brand and product reputation. Both price and reputation will be harder to restore when times are good. Instead of slashing prices, retailers might be thinking about how they are using promotions to attract new customers and maintain existing ones.

Retailers with location or customer demographic data might think about using location-based notification services or apps to target consumers with tailored promotions. Bringing customers in during shop downtime with focused promotions or exclusive pre-Sale events, and using these to upsell and cross-sell, is also something we’ve seen used successfully.

Adding value, such as offering the services of a stylist free of charge, while having a clear understanding of the customer’s budget, is also important.

The tough retail climate is anticipated to continue this year, and as others fail on retail and service, now is a golden opportunity to win over the customer.

  • Zabetta Camilleri is founder and chief executive of Sales information website SalesGossip.co.uk

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.