The artful economizer

Mintel’s research confirms that shoppers across retail channels and demographic groups have come to expect sales, discounts, and bargains. And not surprisingly, off-price sales are on the rise. A.C. Nieslen research of grocery shopping supports the notion that shopping in that channel is increasingly deal-driven. About 43% of grocery purchases are sold on promotion, up two percentage points from a year earlier. Discounting has become even more prevalent at department and apparel stores as these channels struggle to reduce inventory levels in the face of shrinking demand.

Heavy discounting appears to have become standard operating procedure for retailers as they adjust, painfully, to budget shoppers’ increasingly frugal mindsets and stark financial realities. But while deep discounts may help in the short term to generate cash and clear out unsold goods, they certainly aren’t a healthy long-term business practice.

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