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Considering this, a successful Black Friday weekend isn’t about mass promotions but about strategically targeting the right products, distinguishing those that can easily sell at full price from slower-moving items needing markdowns. 

This approach will help brands maximize margins while helping clear inventory. 

A well-calibrated, data-driven discounting strategy will be essential to stay competitive in a shifting market. Leading brands in today’s market are turning to ¹ú²úAV’s market-driven and automated retail intelligence platform Retviews, that allows merchandisers to optimize the way they approach discounting and better spot opportunities in the market, to make more strategic and confident decisions on their collections. 

Dive into the retail data insights that brands need to best navigate discounts, stay ahead of a rapidly changing industry and drive substantial growth. 

Navigating a shifting discount timeline

Crafting an ideal discount strategy that balances timing and markdown rates is crucial to maximizing margins while catering to today’s more cautious shoppers. By discounting the right products at carefully considered rates, brands can boost profitability and avoid unnecessary markdowns.

As Black Friday and Cyber Monday approach, brands need to focus on monitoring market rates and tracking competitor trends to fine-tune their own discounting strategies.

 This approach helps ensure discounts are neither too steep nor poorly timed, positioning collections to optimize sales while protecting margins.

Retviews’ real-time market data reveals a notable increase in discount rates across European and U.S. markets over the past two years. Notably, the average Black Friday discount rate among mass-market brands jumped from 19% in 2022 to 24% in 2023. 

This upward trend has extended into 2024, with discount rates in both regions hitting higher averages during the January and July sales periods. 

With even more aggressive discounting likely this holiday season, will this trend continue through the year-end?

In today’s unpredictable market, leveraging AI-powered market intelligence is crucial for brands aiming to make strategic, margin-protecting decisions. 

Using historical data to clarify long-term trends and real-time insights for immediate adjustments, Retviews’ AI-driven data empowers teams to navigate discounting with precision and confidence, ensuring a successful and well-informed strategy for the season.

Analyzing holiday discount trends from November to January, mass-market brands in the U.S. and Europe have shown distinct approaches. 

In 2023, European holiday discounts saw a slight decrease from 2022 levels, both in the volume of discounted items and the markdown rates, suggesting that European brands may have had more manageable inventory levels. 

However, weaker performance in the second half of 2024 and a cooler summer season could mean elevated inventories, potentially driving brands to increase discounts this year.

In contrast, U.S. brands leaned into heavier discounting throughout 2023. 

With consumer spending still limited, could we see an even sharper divergence in discount strategies this season as brands adapt to meet cautious shoppers more effectively?

Preparing for Black Friday and holiday season discounts demands months of strategic planning to align with evolving consumer behaviors. Summer discounting, the largest markdown period before the holidays, serves as a valuable indicator. 

Analyzing summer discount trends provides key insights into market dynamics and consumer responses, helping brands fine-tune their holiday strategies. 

By examining how various product categories, discount rates, and inventory levels performed during summer sales, brands can make informed decisions on pricing, timing, and inventory for the holiday season—ultimately positioning themselves to capture cautious holiday spending while protecting margins.

Retviews’ real-time data shows a marked rise in discount rates during the 2023 summer sales across both European and U.S. markets. Compared to the previous year, Black Friday and holiday discounts in 2023 also followed this trend, with a slight reduction in markdowns from 2022 levels. 

Notably, 2024 summer discounts climbed further—by 6% in Europe and 7% in the U.S.—which could suggest even steeper markdowns this Black Friday and Cyber Monday as brands brace for the holiday season. 

Given the challenging H2 outlook for 2024, brands are likely to lean into higher discounts to attract consumers. However, the key to a profitable discounting strategy will be in pinpointing the specific items that should be marked down, aiming to preserve full-price sales and avoid sweeping, margin-eroding discounts. 

Strategic, targeted markdowns—not broad cuts—will help brands retain margins while meeting consumer demand. This raises a critical question: Which product categories should brands prioritize for discounts to protect profitability and optimize decision-making in today’s market?

Knowing what to discount: identifying slow movers
 

This season, brands are focused on refining discount strategies to drive sales while minimizing margin loss from broad markdowns. To discount more strategically, brands need to determine the optimal timing and items for markdowns, aiming to limit excess inventory in slower-moving categories.

Retviews’ AI-driven market intelligence enables brands to pinpoint top-performing items versus those struggling to sell, providing insights into each product’s stock and pricing history. 

By tracking items that only move with discounts versus those with high sell-through and regular restocking, brands can identify when and where discounts are necessary, optimizing inventory and maximizing profitability.

Outerwear is a central focus in brand collections throughout fall and winter, with a range of styles from denim to leather and trench coats taking center stage this year. Among these, suede leather stands out as a premium, on-trend fabric with high consumer demand. 

In ZARA’s latest collection, suede jackets have quickly become bestsellers, with its suede blazer consistently selling out and being restocked—a strong indicator of high sell-through and consumer interest, despite its premium price point of $ 229.

The popularity of suede highlights its potential as a full-price item, allowing brands to focus discounts elsewhere and prioritize full-price sales on trend-driven pieces. Identifying such high-performing items enables brands to refine discount strategies, maintaining profitability by leveraging full-price opportunities where demand is strongest.

Since the post-pandemic era, puffer jackets have been a staple, popularized further by the gorpcore trend and fashion influencers. However, as timeless, classic styles dominate—from tailored blazers to sophisticated silhouettes seen across mass, premium, and luxury brands—puffer jackets may now represent a less promising investment for fashion brands. 

For instance, American Eagle’s puffer jacket has shown little stock movement over the past two months, even with a 29% discount, underscoring its status as a slower-moving style that could benefit from deeper markdowns this Black Friday.

In today’s complex market, merchandisers, buyers, and collection managers can leverage real-time data as a critical tool for optimizing retail strategy. 

Retviews retail intelligence makes this possible, by tracking stock levels, collection arrivals, and price adjustments, brands can make data-driven, competitive decisions that maximize sell-through on trend-driven items while strategically discounting slower movers.

Footwear trends are shifting, with ballet flats surging in popularity and sneakers seeing a transformation in brand collections. As classic, streamlined styles gain traction across the fashion industry, the focus in sneakers has shifted to low-profile silhouettes inspired by Adidas classics like the Sambas, Gazelles, and Spezials. These thinner, retro-inspired styles are selling out rapidly, while chunky sneakers seem to be experiencing slower turnover.

Retviews’ data on Zara’s U.S. market collection indicates that low-soled, minimalist sneakers have performed well at full price, with stock levels quickly depleting and frequent replenishments. 

Inspired by collaborations like Adidas x Wales Bonner and the season’s animal print trends, colorful, retro sneakers have become bestsellers across collections at brands like Adidas and Puma, as well as mass-market players like Zara. In contrast, chunkier, running-style sneakers are seeing lower demand, with stagnant stock levels signaling a slower-moving category.

Effective marketing is crucial for successful discounting strategies. 

By closely monitoring competitors’ newsletter communications, brands can identify the optimal timing for their own promotions. 

How early did competitors start discussing Black Friday? Given the shorter holiday discount timeline in 2024, are brands launching their discounts earlier than in previous years?

Retviews’ automated retail data analytics track competitors’ promotional activities, allowing you to filter by specific topics and pinpoint when promotions began, as well as monitor their frequency. 

This real-time data equips your teams with the insights needed to effectively strategize and promote your own discounts, ensuring you capitalize on market opportunities.

As anticipated, brands are starting their discounting earlier than ever, with American Eagle, GAP, and Abercrombie & Fitch launching sales as early as October. 

American Eagle kicked off its autumnal promotions on October 11th, offering discounts ranging from 25% to 70% across nearly its entire collection. However, such steep price cuts this early in the season could potentially jeopardize their margins. 

Similarly, GAP introduced significant mid-season discounts in mid-October, with markdowns between 40% and 60% on fall styles.

In contrast, Abercrombie & Fitch has opted for a more targeted approach, launching initial discounts of 20% exclusively for loyalty program members. This strategy not only rewards their most loyal customers but also creates a sense of exclusivity around their promotions. 

Meanwhile, ZARA is maintaining its premium positioning by refraining from early discounts, instead focusing on launching new collections throughout October. If they follow their usual pattern, ZARA is likely to reserve its Black Friday discounts exclusively for the day itself and the weekend, setting them apart from a growing number of mass-market competitors.

Leveraging market intelligence for smarter markdowns
 

In today's volatile market, the key to retail success lies in a brand's ability to adapt swiftly to industry shifts and outpace the competition. 

This requires a focus on strategic decision-making powered by retail data analytics that can help brands identify which items to discount, determine optimal markdown percentages, and establish the right timing for their promotions.

Real-time data insights are revolutionizing retail merchandising, enabling teams to make informed, data-driven decisions that enhance their everyday operations. 

Keeping up with competitors is no longer sufficient; to truly excel, brands must leverage the power of automated market intelligence. 

By investing in these advanced tools, your team can concentrate on high-value tasks and develop smarter strategies that maximize profitability while minimizing risk. Embrace the future of retail with real-time data, and empower your brand to stay ahead of the curve.