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Analysts call for cure to 'discount addiction'
It just shows how badly run the trade is - and it's very bad - as discounting helps nobody. The more stores discount, the less chance they have to survive. You must maintain your margin and therefore your image and credibility as a store.
Debenhams are an example of persistent and excessive discounting. The brands they stock get slowly destroyed in the process (Ben Sherman is one that springs to mind) therefore indies have to move on to other brands that thankfully do not accept the discount culture.
Some brands sadly love the discounters, especially online ones. It's high turnover and makes the agents or reps look good in meetings with their bosses when the figures come out. But the brands are too short sighted to see that such an approach damages all the other accounts that play ball, so the brand actually ends up selling less, both in terms of volume and value.
Fat Face should be applauded, but I cannot see a general change in discount culture as there is not the will to do it in the wider marketplace at present.
24 August 2012
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