Macy's has announced that it is changing its approach to discounts and coupons, saying that it will still use coupons for full-priced items, but will employ different tactics for clearance merchandise.
According to a Washington Post story, "When an item is on clearance, you can’t apply coupons or other discounts to it. Macy’s said it will apply deeper cuts to the ticket price than it did previously, but the price you see on the tag is the price you will pay. The retailer has also moved all the clearance items to a centralized area in the store - one for men’s apparel, one for women’s - instead of having the racks scattered throughout the store ... The move is effectively a bet that shoppers prefer simplicity over the thrill of demonstrating their shopping savvy. And it could serve as a test case for the broader retail industry, which is grappling with how to win over shoppers who seem less and less moved by everpresent discounting tactics, especially when the Web has made it easier than ever to compare prices."
Macy's says the results of the shift in tactics have been positive where it has been tested.
According to a Washington Post story, "When an item is on clearance, you can’t apply coupons or other discounts to it. Macy’s said it will apply deeper cuts to the ticket price than it did previously, but the price you see on the tag is the price you will pay. The retailer has also moved all the clearance items to a centralized area in the store - one for men’s apparel, one for women’s - instead of having the racks scattered throughout the store ... The move is effectively a bet that shoppers prefer simplicity over the thrill of demonstrating their shopping savvy. And it could serve as a test case for the broader retail industry, which is grappling with how to win over shoppers who seem less and less moved by everpresent discounting tactics, especially when the Web has made it easier than ever to compare prices."
Macy's says the results of the shift in tactics have been positive where it has been tested.
- KC's View:
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I tend to like discounting programs that eliminate clutter and confusion and make it easier for the shopper. That said, in some ways this is exactly the approach that Ron Johnson tried to take at JC Penney, and it sent the company into a tailspin and got him fired. But that may have had more to do with implementation than concept.
