Consumers feeling ‘discount burnout’ ahead of Black Friday

The constant stream of promotions in the fashion industry has caused consumers to experience “discount burnout” ahead of Black Friday and Cyber ​​Monday, according to a new report from consulting firm AlixPartners released Wednesday.

The firm surveyed more than 9,000 U.S. consumers across 140 retailers and nine fashion industries about their preferences and priorities. The report found that shoppers see price increases as “inevitable” and that cost is becoming less important to them when deciding to buy new clothes or accessories.

The survey found that the importance respondents placed on price fell 13% on average compared to last year, falling across all sectors except luxury and beauty. Meanwhile, even in the non-price sector, where deal hunting fell from the top factor respondents considered to be the 19th most important factor in sales compared to last year, 30% fewer consumers rated sales and finding the best deal as “very important.”

Sonia Lapinsky, head of AlixPartners’ global fashion practice and author of the report, said that after President Donald Trump imposed tariff increases on dozens of countries in April, retailers turned to discounts and promotions to ease consumers’ concerns that prices were rising due to trade policy. But he said there was now “fatigue” with promotions and shoppers were looking for more than just discounts.

He said consistent pricing, value for money and quality across stores and online were among the top things shoppers prioritized when spending. They are also looking for a better store experience. While more than 60 percent of respondents plan to do more than half of their fashion shopping in stores this holiday, the survey found that the time shoppers spent in stores decreased by 3 percent and basket size decreased by 5 percent in the past two years. Average percentage change. weekly visits, wait time and basket size per store1. Group of 50 US retailers, first 20 weeks of 2023-2025

“We have higher foot traffic and lower carts. There’s something missing because they’re not converting,” Lapinsky said. “So what is it about this in-store experience that doesn’t help conversion?”

The findings come as the retail industry prepares for a holiday shopping season that could be weaker than previous years due to falling consumer confidence, an uncertain job market and the global crisis. permanent inflation. The challenging economic environment coloring the holiday season is driving a renewed focus on execution, quality and brand strength, especially as many retailers raise prices to offset the cost of tariffs.

Lapinsky said the survey’s findings are a “warning” for retailers that discounts may not be enough to boost demand this holiday season.

“They’ve always had this discounting tool to drive traffic and get people into the store, but when you combine that with tariffs and their need to raise prices, that leverage is going to become even riskier for them,” Lapinsky said. “Things won’t work the same way because of fatigue.”

The luxury sector provides a cautionary tale for the retail industry as price increases in importance as a factor for shoppers when spending, the report said. The company said brands have “dramatically increased prices” over the past few years, citing Chanel’s decision to increase the price of one of its bags from $5,800 to $11,300 between 2019 and 2025.

The report states that the sudden rise caused consumers to withdraw from the industry and turn to premium brands that “feel more rationally priced”.

“The same dynamic applies to other sectors,” the report said. “Retailers who try to hold the line on pricing by reducing quality risk losing credibility.”