Recent research has found that two-thirds of Aussie shoppers are always on the lookout for an online sale or discount, putting more pressure on retailers to continually offer discounts. There’s an upside for retailers who are discounting – sales often entice customers to make impulse buys that they hadn’t intended on. Sales and discounts can also attract new customers with 53% of retailers stating this as a benefit.
However, discounting always puts pressure on margins, and with rents and wages as the biggest costs, retailers have to be mindful that the increase in customers and impulse items pay off in the end. Otherwise, it’s a slippery slope to the bottom!
6PR’s Chris Isley discusses with Roger, the challenges facing retailers who head down the discount path.