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NRF: Is Deep Discounting a Race to the Bottom?

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Retailers need to back away from pushing price as the primary driver of value.

That’s according to Brian Kilcourse, managing partner at Retail Systems Research, who spoke during a discussion titled “How to Break the ‘Death by Discount’ Cycle” at the National Retail Federation’s (NRF) 2016 Big Show on Monday.

“Underperforming retailers, or laggards, want to create a better value proposition. But a value proposition to these retailers equals a low price. The problem with that is that any retailer on any given day can decide to beat their price and take them out,” he stressed. “Underperformers are really feeling the pinch. They’re worried that promotional reliance will lead to brand equity erosion. They’ve fallen into the trap of making price their number one lever to push.”

Read more at Sourcing Journal.

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