Retailers Face Uphill Battle This Holiday Season Due to Discount Fatigue, Crime, and Excess Inventory
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Discount fatigue - Consumers are bombarded with endless deals and no longer see promotions as special. This conditions shoppers to just wait for the lowest price.
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Crime-ridden stores - Retailers like Target and CVS have warned of increased theft and crime in stores, closing some locations. This could scare off holiday shoppers.
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Too much stuff - Retailers struggle with excessive inventories, meaning a glut of unwanted items that will require heavy discounting.
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Overall sales declines - Retail sales fell in September-October for the first time since March, an "ominous sign."
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No long-term loyalty - Deep discounts don't engender brand loyalty, they just lead consumers to the next deal.