Phil Rubin

Flash Sale Sites Lead to Full-Price Purchases

February 16, 2012

FROM RETAILWIRE:
While a larger number of consumers have been drawn to luxury fashion courtesy of flash sale sites, new research from American Express Business Insights shows that consumers are spending more of their dollars on full-price sites. Which statement is more true: flash sales sites lead consumers to make full-price luxury purchases or flash sales sites train consumers to never pay full price?      [more...]

Without question: flash sale sites train customers not to pay full price more than they lead them to full-price luxury purchases. The only exception is the true luxury customer who sees and knows the difference between promotional goods and the real thing(s).

There are too many flash sale sites offering too many goods that are more befitting an off-price retailer than a luxury merchant. But then again, most retailers are pursuing a discount strategy above all else anyway. Just look at Neiman Marcus!