The Evolution and Impact of Discounts in Retail: A Necessary Strategy or a Never-Ending Cycle?

What could possibly be the potential solutions including fixed dates for heavy discount sales, and identify opportunities for industry-wide collaboration to create a more sustainable and predictable retail environment.

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The proliferation of frequent and prolonges sales has disrupted the traditional retail calendar, creating a chaotic environment for brands, retailers marketplaces and malls. Discounts have become a defining feature of modern retail, but their journey from occasional sales events to an industry norm is a story shaped by economic shifts, technological disruptions, and evolving consumer behavior. Before 2007-08, structured discount events like End of Season Sales (EOSS) were rare in India. However, the global financial crisis forced brands to adopt discounting as a necessity to clear accumulated inventory and sustain profitability. What started as a short-term solution soon became an integral part of retail strategy.

The next wave of change came in 2014 with the rise of online retail. E-commerce platforms aggressively leveraged discounts and price differentiation, drawing customers away from offline stores. To compete, brick-and-mortar retailers also embraced frequent discounting, making price cuts a standard expectation rather than an occasional incentive. The pandemic further accelerated this trend, as retailers struggled to clear unsold inventory and attract hesitant shoppers back to stores.