How Discounts Can Ruin Your Retail Store

Why is offering discounts to your customers a terrible idea long-term? Find out.

Stop Using Discounts Now

As the festive season is near the corner, most retailers and businesses will resort to offering massive discounts to attract shoppers who are wary of the recession into their shops. This might seem like a great idea to make a kill from the massive sales, but analysts are warning that this path is not the best for business. Discounting will not only risk damaging your store but also alienate the consumers it needs to woo.

Damaging Customer Trust

The moment a store advertises massive discounts on its merchandise, it risks damaging the customer’s trust and alienating mid-market customers.

It has been noted that retailers who participate in too much discounting risk alienating their loyal customers who come to their stores expecting the premium experience. If a store doesn't curtail on this practice, then its clients will lose their trust and start comparing it with other retailers who are always offering discounts.

This could make it hard for such a store to compete with other retailers as it will already damage its brand identity and the trust of its loyal customers.

It Sets a Bad Precedent Among the Customers

Discounting various items often could anger the loyal customers who would have paid for the same items at the full price. This annoyance could grow into something big that the retail store won't be able to fathom and it could threaten its existence altogether.

It's important to note that customers are the pillars of any business, and losing a single customer has a devastating long-term effect on the business.

Another issue brought about by frequent discounts in a retail store is the expectation of discounts all the time from the consumers. This could escalate to a point where consumers could be unwilling to buy products at their full price. This reduces customer loyalty.

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Thinning Customer Loyalty

Customer loyalty that a retail store had become accustomed to will start slipping away as more consumers will be aware of several discounts being offered elsewhere. The consumers will feel the pressures from outside and slowly slip away to follow the discounts offered around.

Consumers will also start wondering why the products were offered at huge prices before the discounts came about, which could bring a new headache for the retail store. It will be an uphill task convincing customers to pay for the same prices in the post-discount era.

It is not wrong for retail stores to offer discounts here and there but the discounting ought to be done in a careful manner as it could cause serious damage to the retail business.

To see a positive example of managing retail discounts, visit