The Problem with Retail Promotions: Diminishing Returns of Discounting in a Promo-Saturated Market
ToolsGroup
MAY 9, 2024
Imagine strolling into your favorite store, only to find yourself in a sea of “SALE!” signs and “50% OFF!” banners. It’s a common scenario. Retailers rely heavily on promotions, which can account for between 10% and 45% of their total revenues, according to research from Boston Consulting Group. In today’s dynamic retail landscape, promotions are undeniably a potent tool for driving sales and customer engagement.
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