Executive Briefings

Making Sales Continues to Be Tough, So Retailers Lean Heavily on Promotions

Retailers are relying heavily on discounts and promotions early in 2016. The trend is continuing from the 2015 holiday season, according to the "DynamicAction Retail Index: Spring 2016."

Making Sales Continues to Be Tough, So Retailers Lean Heavily on Promotions

In the first quarter, retailers sold less at full price versus a year ago, with full-price sales down 4 percent and orders using a promotion up 63 percent. Specifically in March, data revealed an 86 percent increase in orders using promotions compared to 2015.

Conversion of first-time buyers into second-time buyers was also tough, down 6 percent to the previous year.

However, revenues were up 10 percent in Q1 versus the same quarter in 2015. Retail profits were up an average of 5.2 percent, most of which occurred in January, leaving a volatile February and March.

In fact, according to the Verizon Retail Index, the first weekend in January 2015 generated the highest online shopping traffic volumes since the start of that holiday shopping season. Traffic surpassed Black Friday weekend, Super Saturday weekend and the day after Christmas weekend.

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In the first quarter, retailers sold less at full price versus a year ago, with full-price sales down 4 percent and orders using a promotion up 63 percent. Specifically in March, data revealed an 86 percent increase in orders using promotions compared to 2015.

Conversion of first-time buyers into second-time buyers was also tough, down 6 percent to the previous year.

However, revenues were up 10 percent in Q1 versus the same quarter in 2015. Retail profits were up an average of 5.2 percent, most of which occurred in January, leaving a volatile February and March.

In fact, according to the Verizon Retail Index, the first weekend in January 2015 generated the highest online shopping traffic volumes since the start of that holiday shopping season. Traffic surpassed Black Friday weekend, Super Saturday weekend and the day after Christmas weekend.

Read Full Article

Making Sales Continues to Be Tough, So Retailers Lean Heavily on Promotions