What Macy’s, Neiman Marcus and Guess Reveal About Price Wars
To increase the spending limits of the customers, retail shops Express and New York & Co. have adopted the discounting of their products strategy to attract more buyers. The discounting have made shoppers consider those were buying at full price to fool while the expert waits for a while and go for the same product at a discounted rate. While the retailers face competition from the fellow retailer, some have embraced the marketing strategy of giving a discount to particular goods to capture product-loyal customers.
The need to change the pricing of good by stores like the Tony Neiman Marcus and popular Express, have chosen to pull back on discounts, and give offers to shoppers once in a while to control the value of the commodities. Stores like New York & Co. and Quicksilver have decided to stop discounting all products to specific products. With all those effort controlling the price won’t be successful unless these stores recognize the role of personalized pricing in the pricing strategy.
Personalized pricing is already showing success in some supermarkets. They use an application that identifies product-loyal customers once they are in a store and share a related product with one they frequently use, as a model of marketing. The strategy is not useful for department stores and personalized promotion complemented with discounts is preferred. The stores can send discount cards to invite less frequent shoppers to come again. The pricing model by retailers will have to change to digital personal pricing, to ensure they will remain relevant in the industry as they compete with other retailers. All retailers instead of competing for pricing structure they should brand their products to reduce the market competition.