In recent years, the UK retail industry has been dominated by consumer demand for discounts. This demand has led to high-profile ‘supermarket wars’ on prices, the rise of budget high-street chains and the growing popularity of Black Friday and Cyber Monday.
And yet, as the UK enters a period of rising inflation, many chains are asking whether they can maintain their low prices while remaining profitable. Others have concerns that high-profile events such as Black Friday, while generating record sales and footfall, are actually eating away at their profits.
At worst, retailers face a race to the bottom just to keep their customers satisfied. So how can they balance consumer demand for discounts and promotions without taking a hit to the bottom line?
