Discount schemes will only go so far before they become unprofitable


Lowering prices only works as a short term solution, but even then with Black Friday weekend this wasn’t enough to boost Nov sales overall. It’s likely we see a fall in retail prices in the new year as fashion and specialty retail brands hope to clear off seasonal inventory in Boxing Day and January sales. However, this is not a long-term fix. Inflation is predicted to remain high for the next couple of years, and there is only so much cost that retailers can absorb before they become unprofitable.

As we enter the new year, competitiveness will be the focus for retailers and supermarkets. This means optimising costs where possible and becoming more agile when it comes to changing the inventory mix in stores. For example, aligning consumer demand with data-driven store assortment to support availability and maximise profit per square foot. Retailers should also focus on price match schemes, as these are a real differentiator as pockets are squeezed, whilst negotiating hard with suppliers to keep prices down on the back-end.