From independent boutiques to national chains, many retailers lean heavily on coupons, sales, and markdowns to drive traffic.
On the surface, discounting seems like an easy win to boost sales.
In fact, almost all American shoppers (a whopping 94%) redeem at least one discount or coupon each year, and 67% of U.S. consumers have made an unplanned purchase only because a discount was offered. Shoppers love a good deal, and retailers know it.
However, using perpetual promotions as a crutch comes at a high cost. If your business’s default solution to slow sales is “20% off” signs in the window, it could be a sign of deeper problems, especially a lack of proper sales training and customer experience. (I took this picture a few years ago of a GAP and their endless sales.)
This is a rundown of a recent conversation. I’ll explore how prevalent discounting has become, why it’s a dangerous trap for retailers, and how it can backfire by eroding your margins and brand. I'll also show evidence that customers will pay full price for great service (so competing on price isn’t the only way), and provide a 12-question checklist so you can assess if you are stuck in the discount trap.
If you’re wondering whether backing off constant promotions is actually possible for a retailer, look no further than Gap Inc. For years, Gap was the poster child of markdown madness, storewide promotions, endless coupons, and deep discounts that trained customers to never pay full price.
But in 2023, Gap brought in Richard Dickson, former Mattel executive who famously led the Barbie brand resurgence, as CEO. And one of the first orders of business he recently shared?
Fix the brand's voice and stop the discount chaos.
“If you had gone into a Gap store a year ago, or Old Navy, you were to some extent bombarded. It was almost unbelievable to the extent that even internally, we would pull up our sites and I would say, what are we selling? When you go into stores and you see a sign on every single fixture, that's not an experience that's gonna be appealing. So our signing system has gotten a lot more refined. Our sites have become a lot more precise.” — Richard Dickson
“We love promotions. We love exciting the consumer with great price and great value and great style. But our communication and how we promote is a much more refined and directed narrative.”
Dickson acknowledged the brand had lost its voice and had become, in his words, “just a place to buy stuff on sale.” His turnaround plan didn’t just focus on aesthetics, it redefined how Gap connects with its customers:
This is exactly what any retailer can take to heart: You don’t have to discount your way to the bottom.
You can sell at full price if you lead with value, train your teams, and communicate your brand clearly. If a promotional juggernaut like Gap can un-train its customers and course-correct, so can you.
Download this checklist and answer “Yes” or “No” to each:
Do you run more than one promotion per month?
Is your average transaction value stagnant or declining?
Are customers regularly asking, “When is your next sale?”
Do you have different discounts running across your channels (email, in-store, SMS)?
Do your associates default to discounting when customers hesitate?
Are your best products routinely marked down?
Do you ever promote without a clear goal or ROI metric?
Are employees unclear about how to sell without price cuts?
Is your store signage focused more on price than product value?
Do you see a traffic spike during sales but poor retention after?
Have your margins shrunk over the past year?
Would your store struggle to make a full-price sale without promotions?
Scoring:
0–3 Yes: You’re in control (for now).
4–7 Yes: You're discount-dependent—time to re-evaluate.
8–12 Yes: You’re stuck in the trap—and it’s costing you more than you think.
→ Download the Printable Version Here with space to mark responses
You have to be willing to give up that shopper who only buys on "deals." If not, you’re like a cheap restaurant willing to use frozen ingredients. Soon, the only customers you attract are the ones who care about price, not quality, and they’ll leave you the moment someone else is cheaper.
And fix isn’t a better name for a storewide sale.
It’s training your team to sell with confidence, build rapport, and demonstrate real value.
Instead of:
Offering 25% off all jackets, teach your team how to connect with shoppers around style, warmth, and quality.
Putting discount signage throughout the store, train staff to tell product benefit stories that make full-price feel like a smart decision.
Waiting for traffic to show up on sale events, build a team that creates demand every day by starting great conversations.
Promotions have their place, but not as your primary strategy. What you really need is to equip your staff with the tools to create a full-price customer experience: strong greetings, great product storytelling, and confidence to close.
That’s why 83% of SalesRX users have reported double-digit sales increases in under six months, without racing to the bottom.
Ready to stop training your customers to expect a discount? Start training your team instead.