E-Commerce and Brick-and-Mortar Markdown Trends

Markdowns get messy fast. One minute my favorite jeans vanish online at 40% off, next minute the store’s dumping linen shirts nobody wants, both claiming it’s “exclusive.” Shoppers (me included) bounce between tabs and aisles, chasing deals with no rhyme or reason. And honestly? Brands love it.

E-commerce Discount Strategies

Nobody ever really warns you about how aggressive e-commerce discounts get—like, they’ll literally follow you from your laptop to your phone. I tossed some Reeboks in my cart, didn’t check out, and bam—push notification, email, the works: “20% off, just for you!” It’s called “abandoned cart recovery,” apparently, and Forbes says it bumps up sales by 10–15%. Sure, but is anyone actually thrilled to be stalked by their own shopping indecision?

And don’t get me started on flash sales or those “personalized” codes. Do brands think we can’t open another tab and check prices? I’ve hit “sort by lowest” and watched discounts yo-yo literally by the hour. Then you get the “members only” deals, but half the time, those “exclusive” items are cheaper at some random outlet. Does anyone track this mess, or is it just AI throwing darts at a wall? And seasonality? Please. Boots go on sale in April, but I’ll get ads for jackets in July, no matter if I’m in Phoenix or Portland.

In-Store Promotional Events

So last Thursday, I wandered into Target—classic mistake. Yellow sale stickers everywhere, but it’s like, midweek? Most of the staff are still slapping on tags, so if you show up on Friday, all the good sizes are already gone. A friend who used to plan Macy’s sales told me stores time events around e-commerce slumps, which they track every Monday. I wish I had a dashboard for my own life.

In-store markdowns seem random unless you pay attention. IKEA runs those “furniture family” deals during local festivals, probably because parents are losing it. And those “doorbusters”—let’s be real, it’s just bait to get you to buy overpriced snacks. The ICSC’s Halo Effect study (everyone cites it) claims opening a store boosts local online sales by almost 7%, but execs still act like it’s all about balloons and confetti. And those window signs? “LIMIT 5” when there are only two boxes left. What’s even the point?

Managing Promos, Margin Loss, and Brand Perception

Some days, I stare at a spreadsheet telling me to slash prices on last month’s best-selling sandals, but it never warns me about the margin nosedive waiting behind that “limited time only” button. Every season, it’s the same: deep discounts, margin pain, and a weird shift in how people talk about the brand. I’ve seen loyalty spike after a smart markdown, but one botched promo code and suddenly everyone’s circling for clearance like it’s blood in the water.

Avoiding Margin Loss With Strategic Markdowns

Markdowns are not magic. I learned that the hard way. Missed the July cut-off? Ended up dumping shorts at 70% off in August. Margin? Gone. NRF’s 2024 survey says fashion retailers lose over 8% in margin from bad discount timing. That stings when you’re stuck with $98 dresses you’re now selling for $60, and the stockroom’s still full. There’s this urge to clear space for fall, but dynamic-pricing tools (the one in my ERP is a nightmare with old SKUs, by the way) can help pivot faster. Sometimes I just segment: keep core basics at full price, dump the trendy stuff before TikTok moves on.

I once tried a tiered discount for hats—15% off for three days, then 25% off the weird colors. Turns out, the “best” discount timing depends on the item. Even fancy price elasticity tracking won’t save you from a TikTok trend that wipes you out overnight or leaves you drowning in stock. Sometimes, just letting a hot style sell out at full price is the only way to win.

Maintaining Perceived Value

During clearance, it’s way too easy to forget how fast customers start expecting everything to be dirt cheap. Dr. Akshay Rao (I follow him, he’s big on pricing) says price cuts should boost, not kill, brand value. I scribble that on sticky notes, but it doesn’t help when my DMs fill up with “got any extra coupons?” after every sale. And then there’s markdown limbo: wait too long, shoppers bail; drop a hint of a sale, they’re back.

Keeping perceived value means showing a clear line between a one-off markdown (old stock, last sizes, whatever) and just constant discounts. I’ll mess with visual tricks—new stuff up front, clearance in the back, color-coded stickers (yes, I’m that person). Shoppers know what’s special and what’s just cheap. If there’s a promo calendar, I stick to it. Rumor has it, once you go promo-heavy, you can kiss full-price sales goodbye. 2023 data from fabric’s pricing study kind of backs that up: too many markdowns, and people just wait for the next sale instead of buying now.

Protecting Brand Image and Equity

Here’s the kicker: constant markdowns don’t just wreck margins, they trash brand equity—the invisible stuff that actually keeps people coming back. I watched a new accessories brand lose its cult status after weekly “bigger discount” emails. Carlson School experts warned about this exact trap. Suddenly, nobody cared about the design or collabs, just the lowest price.

Whenever I set markdown rules, I obsess over net promoter scores and social comments. One big, sloppy clearance can do more long-term damage than anyone wants to admit. Sometimes, it’s smarter to donate or bundle slow sellers instead of marking them down in public, just to keep things feeling “exclusive.” There’s no spreadsheet for “customer trust,” but you know when it’s gone—returns spike, referrals drop, reviews disappear. My advice? Test markdowns in one spot, watch brand sentiment (I use Sprout Social, not that it’s perfect), and never assume last year’s promo plan works for this year’s Instagram crowd.

Industry Challenges and Future Outlook

It’s chaos out there. Retailers chase markdowns on whatever’s trending, supply chains tangle, prices change every five minutes, luxury brands panic over margins, and AI keeps spitting out predictions nobody believes until they actually work. I’ve seen dashboards crash over bad forecasts, managers swap out heels for sneakers, CFOs mainlining coffee at 1 a.m. to run one more simulation.

Supply Chain Disruptions and Inflation

Right in the middle of spring launches, I get texts from buyers: denim stuck in Rotterdam, whole jacket lines on hold. Inflation’s not helping—wholesale prices jump, markdowns come earlier, and last month’s “it” item gets discounted before the window display even changes. Retailers say supply mess-ups turn planned markdowns into panic sales. P&G’s 2024 notes brag about faster inventory turnover, but warn cost pressures are “sticky.” Deloitte’s outlook? More shocks, squeezed margins, endless promo noise. Anyone who says they’re immune hasn’t looked at their landed cost spreadsheet lately.