Are we becoming Promotion Junkies!

It is clear that retailers are fighting over customers. It is not surprising, because if the UK market is not showing growth, i.e. the cake is not getting bigger, retailers are having to promote to persuade customers to come to them (chase marketshare). Particularly as customers have so much choice. Never knowingly undersold is being replaced with Always knowlingly under-selling.

As one retailer said to me, the problem with retailing today is that it is not just about making sales but about making profitable sales. Profitable sales is the golden quest.

When to promote, what to promote and how much to promote? If you get these wrong, you might as well stand outside your shops and hand out cash to customers entering your store.

Sorting out good pricing and promotion strategies is the key to success. With markdowns in excess of 20% any improvement, even shaving off 1% of that is worth its weight in gold.

Doing smarter promotions is the key here. They do not have to be about a discount. In fact promotions that are not about discounts are better.

Targeting is also critical. Knowing your customer segments and sending them targeted vouchers (or voucher codes) is a good idea.

Nurturing not overwhelming customers is what is needed.

Remember that old adage, price says more about you than anything else will. It is the most important brand statement you can make. Dont devalue it.....