300,000 Products Analyzed Suggest Fewer Promotions in 2015 Holiday Season: Upstream Commerce
Analysis of holiday sales data of seven major fashion retailers found that both the number of discounted products and the depth of price promotions in the holiday season of 2014 diminished compared to the same period in 2013, hinting at what to expect this 2015 holiday season.
Retail intelligence leader Upstream Commerce studied the enormous amount of 300,000 products offered by Amazon, Bloomingdales, Macys, Neiman Marcus, Saks Fifth Avenue, Shopbop, and Zappos.
The following trends were seen:
All retailers except Neiman Marcus offered fewer discounted products AND lower discount rates in the 2014 holidays, with Amazon, Zappos and Shopbop showing a dramatic decrease.
Amazon discounted 29% fewer products in 2014 and its average discount was 40% lower.
Zappos offered hardly any discounts.
”In our discussions with fashion retailers, we hear about their constant search for ways to ’control‘ promotions and protect margins of the higher-end retail stores while diverting part of these price reductions to their discount stores (such as Last Call and Off 5th); and the holiday season might be affected by this trend," says Upstream Commerce CEO and co-founder, Amos Peleg.
"If that’s the actual reason for the discounts, we should see further decline this year in the promotion rates as well as the number of discounted products," Peleg concludes.
The full report can be seen at Holiday Promotions Strategies Report: 300,000 Products Hint At Promotion Strategies for the 2015 Holiday Season
About Upstream Commerce
Global retail intelligence leader Upstream Commerce offers SaaS-based intelligence and predictive analytics solutions that transform the way retailers price, select merchandise, and manage products in order to maximize sales and optimize margins.
The Upstream Commerce Suite of Solutions empowers retailers to base all shopper-centric decisions on real-time market data. The company's highly configurable, flexible, and user-friendly platform enables retailers to effectively manage their pricing strategy through accurately tracking and comparing product pricing, availability and promotions using Price Intelligence; optimizing pricing using Predictive and Dynamic Pricing; optimizing product selection using Assortment Intelligence; monitoring MAP; making relationships with suppliers better informed; and bridging the gap between merchants and automation using Advanced Trending.
To find out how Upstream Commerce delivers results to the largest and most innovative retailers in the world including Staples, ToysRUs, Petco, eBags, JEGS, top fashion retailers, and many others, visit http://www.UpstreamCommerce.com or call 1-800-815-1842.
SOURCE: BUSINESS WIRE. ©2015 Business Wire