There are only five weeks to go until Black Friday, the traditional kickoff of the holiday shopping season. However, new research suggests that many Americans are already burned out on deals.
‘Discount burnout’ sets in early
CNBC, citing research from the consulting firm AlixPartners, reports that shoppers are experiencing “discount fatigue,” as relentless promotions flood stores and social media feeds.
The firm surveyed more than 9,000 U.S. consumers across nine retail sectors – including fashion, jewelry, footwear, luxury and outdoor gear – and found that price is no longer the top factor driving purchases.
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Instead, consumers are increasingly seeking value – defined not by markdowns, but by quality, service and authenticity.
“The core foundation of fashion retail is being tested by consumers who are both frustrated and increasingly fickle,” said Sonia Lapinsky, global leader of fashion retail at AlixPartners. “Shoppers are tired of decoding pricing games, tired of lackluster service and tired of doing the work.”
Value over price
The survey found a notable shift in how shoppers define “value.” Brand identity and emotional connection now play a larger role in buying decisions.
For example, in footwear, 43% of consumers said a strong, relatable brand identity was essential, nearly double the number from last year.
Lapinsky says that should serve as a warning to retailers that markdowns and price discounts alone won’t be enough to increase demand this holiday season.
“They’ve always had this lever of discount to drive traffic and get folks into the store… It’s not necessarily going to work the way it has, because of this fatigue,” she said.
Tariffs and the pressure to promote
With tariffs dominating business headlines, CNBC reports that many retailers have returned to steep discounts to offset fears of higher prices. But that strategy may be losing its effectiveness.
According to AlixPartners, 60% of shoppers still plan to make most of their fashion purchases in stores this holiday season, yet they’re still spending 3% less time shopping and making purchases that are 5% smaller than two years ago.
Bryan Eshelman, a partner and managing director at AlixPartners, said retailers must adjust: “This year, overall, retailers face a consumer who is more cautious and frugal. Markdowns need to be carefully executed, and regardless of income, shoppers are prioritizing value and want the best bang for their buck.”
The takeaway for retailers
Experts say the message is clear: The days when slashing prices could guarantee traffic are over. To stand out this holiday season, retailers will need to offer something deeper – trust, service and a brand story that resonates.
