Heavy discounts, offers during COVID-19 a ‘dangerous’ game: retail experts – ZAWYA

Heavy discounts, offers during COVID-19 a ‘dangerous’ game: retail experts – ZAWYA

Many retailers now deal with excess stocks after lockdown. Discounts and sales that retailers are promoting to stimulate consumer spending in the time of pandemic is a "dangerous" game and not sustainable for business, industry experts have warned.. "But when you live on discounting or sales, it's a very dangerous game and it's not sustainable, because all you're doing is further eroding whatever margin you're trying to create," Kukadia said during a webinar hosted by The Retail Summit.. With foot traffic still very low compared to pre-pandemic levels, many retailers, including those that carry premium brands, have opted to reduce their price tags.. Johnny Malek, marketing advisor at Dubai CommerCity, a free zone dedicated to e-commerce in the region, said that businesses that jump into the discount bandwagon might lose the battle, especially if they don't invest in customer experience and build up their brand reputation.. And the brands that are actually loud today and they're communicating in a way that are ringing the bells for certain customers are the ones that are going to make it," Malek added..