I love retail. I’ve honed my craft as a demand planner and buyer at some of the biggest names in the industry, including Inditex and Beaumanoir Groups. But tell me—am I the only one shaking my head at the outdated, self-sabotaging practices still running rampant?

I’m all for tradition—think France and fashion—but clinging to strategies that no longer work? That drives me nuts.

There’s too much to unpack in one post.

Luckily, the team at autone has given me free rein to write as many as I want. So let’s start with the most glaring issue: discounting.

Tradition? Maybe. A UNESCO World Heritage Site? Absolutely not.

It’s time to call out the nonsense.

Discounting is not a commercial strategy

Retail’s goal should always be to maximize profit.

Sure, discounts have their place, but they’re a blunt instrument—one that often works against that goal. In an ideal world, retailers would sell at the right price, in the right quantities, without slashing prices to clear stock. 

A small buffer for overperformance? Fine. Any excess can be discounted if necessary. But planning for markdowns from the outset? That’s an admission of failure.

And when profit is the difference between survival and collapse, can retailers really afford to be so reckless with their margins?

Show me the incentive, I’ll show you the outcome

The problem isn’t just a few brands—it’s systemic. Worse, it’s baked into the very incentives that drive decision-making. I’ve seen e-commerce managers measured on revenue, not margin. So what do they do? They hold back stock for sale periods—even if it means selling at a loss—just to hit revenue targets.

And it’s not just fast fashion. Luxury brands with premium storefronts are doing the same, sacrificing full-price sales opportunities for short-term numbers.

It’s madness. And it needs to stop.

Spare a thought for the brand managers

Retailers spend 5–10% of their budgets on brand-building—crafting the dream, justifying the price tag. And then? They gut their brand equity with deep, frequent discounts. Who thought "50% off" was a great idea for both margins and brand perception?

The race to the bottom

The industry needs a cultural reset—moving away from discounting as default toward a true full-price sales strategy. The idea that lower prices = more sales is dangerous.

Pair that with planners overbuying to secure bulk discounts—only to erase those margins with markdowns—and you’ve got a perfect storm.

So, at the very least, are retailers applying data-driven logic to their discounting?

• Is there a science behind when, where, and how much to discount?

• Is there an algorithm that identifies the smallest discount that drives the highest sales volume while protecting margin?

From my daily conversations with retailers, the answer is a resounding no. Most of the time, it’s guesswork.

“Let’s go with 30% off.”

“Actually, we really need to move this stock—make it 50%.”

Is anyone running the numbers on how much more volume that extra 20% discount actually moves? Or are they just crossing their fingers? More often than not, they’re gambling—choosing between bad and worse. And I don’t like those odds.

Come for the discounts, stay for the full-price collection

Not all discounting is bad. Used strategically, it can be a tactical lever to attract new customers, introduce them to the full-price collection, and even increase basket size.

In that case, the margin hit makes sense—it’s a marketing investment in long-term profitability. That’s discounting done right.

The problem? Too many retailers are doing it wrong.

Time to break with tradition

With ultra-competitive markets, shifting consumer demands, and tough trading conditions, it’s tempting to cling to the “tried and tested.”

But let’s be clear: retailers can’t afford to stick with strategies that don’t work. Profit or perish. And margins matter.

Discounting has become a crutch—an easy way out. But it should be the last resort, not the first. A full-price sales strategy isn’t just possible—it’s profitable. Case in point, a global beauty brand using autone increased its full-price sell-through by 15% with our inventory management solution. The future of profitable retail isn’t about slashing prices—it’s about offering the right product at the right price from the start.

It’s time to ditch the bad choices and start making smarter ones.

This is the third post in our latest Profit or Perish series where we uncover the key retail trends that’ll dominate 2025. Watch this space for more predictions coming soon.