Retailers Slash Holiday Discounts

In the face of rising consumer demand and inflation, retailers are reducing their discounting activity this holiday season. A study of major retailers across Apparel & Accessories, Department Store, Big Box, and General Electronics using Earnest Analytics (FKA Earnest Research) Retail Pricing data revealed that most brands pulled back on the percent of their products selling at an advertised discount. Target, for example, reduced the percentage of stock on sale from 52% in November 2019 to 30% in November 2021. The degree of discounting also fell for Target, with average percent discounts declining by 10pp in the same time.

This story is repeated across other major retailers such as Abercrombie & Fitch, Best Buy, Kohl’s, Lululemon, and Nordstrom. Nevertheless, the pullback in discounts isn’t slowing consumer spending so far in the preliminary holiday season data.