Retailers Navigate Concerns Amid Unprecedented Discounts

Early Black Friday Discounts: A Shift in Retail Strategy

In a noteworthy departure from the norm, this year witnessed the emergence of Black Friday promotions as early as October, signaling a growing apprehension among retailers regarding potential subdued demand during the pivotal holiday shopping season. This strategic move aims to adapt to evolving consumer behaviors and proactively address uncertainties in the economic landscape.

Diverse Discounts Across Categories: A Deep Dive into Adobe Analytics

Detailed insights from Adobe Analytics shed light on a substantial surge in discounts across diverse categories, including apparel, appliances, and computers, when compared to discount trends in 2021 and 2022. Notably, online apparel prices experienced a remarkable 9% reduction throughout October, a significant contrast to the more modest 2% and 5% reductions in the previous two years.

Decoding Holiday Categories through Adobe’s Lens

Among the eight holiday categories meticulously tracked by Adobe, only electronics and toys witnessed fewer discounts last month compared to the corresponding period in prior years. It’s crucial to note that Adobe’s analysis, while comprehensive, excludes promotions at physical retail locations, focusing solely on over one trillion online retail visits, 100 million SKUs, and 18 product categories.

Online Sales Resilience Amid October Spending Dip

Despite a dip in overall consumer spending during October, online sales showcased resilience, surging nearly 6% to an impressive $76.8 billion. This surge was propelled by a combination of deep discounts and an increased adoption of buy now, pay later services, allowing customers to split orders into four payments. Last year, approximately 30% of overall holiday sales occurred online and through non-store channels.

GlobalData’s Validation of Early Discount Trends

GlobalData’s comprehensive analysis aligns seamlessly with Adobe’s findings, underscoring the depth of discounts and the sheer volume of items on sale in October, surpassing figures from the last four years. Average discounts across various categories reached a notable 24.1%, marking a significant increase compared to 16.7% in 2019 and 12.9% in 2021.

Strategic Insights into Retailer Approaches Amid Economic Uncertainty

Contrary to being a mere reaction to economic challenges, early and substantial discounts serve as a proactive strategy by retailers to address potential weaknesses in consumer demand. Professor Daniel Rubin from St. John’s University emphasizes that retailers are strategically extending the shopping season and offering deeper deals across a diverse array of product categories.

Navigating the Nuances of Recent Holiday Seasons

The varying discounting patterns witnessed over recent holiday seasons highlight the inherent unpredictability stemming from external factors, particularly the disruptions caused by the Covid pandemic. From the abundance of cash in consumers’ hands in 2021 to the supply chain snarls, each year posed unique challenges and necessitated adaptive strategies.

Examining Potential Long-Term Implications for Retailers

The trend of increasing discounts, anticipated to reach record highs this holiday season, holds potential long-term implications for the retail landscape. Professor Brett House from Columbia Business School suggests that businesses may be strategically adjusting inventories in anticipation of slower growth and weaker consumer spending in 2024, signaling a nuanced approach to future planning.

Mixed Holiday Outlooks from Retailers

Recent reports from retailers provide a mixed outlook for the upcoming holiday season. While TJX expresses confidence in a robust season, Gap adopts a more cautious stance, anticipating flat or slightly negative sales. Walmart acknowledges a significant consumer shift towards major promotions, prompting a reevaluation of the company’s perception of consumer health.

The Pervasive Impact of Constant Deep Discounting on Consumer Behavior

Professor Rubin raises concerns about the potential long-term consequences of perpetual deep discounting, which could condition consumers to expect ongoing deals. As consumers acclimate to a culture of perpetual discounts, retailers may encounter challenges in persuading them to pay full price, potentially creating a lasting paradigm shift in consumer behavior.

Tesla announce US and UK discounts on selected vehicles

Tesla: Every industry has been impacted by the economic crisis, which has forced difficult decisions from major brands.

Tesla is moving in a different route than other companies, which have been laying off employees to decrease expenses.

The developer of electric vehicles is reducing prices in the US and Europe instead.

The news

Tesla is an enterprise that designs and develops electric automobiles, devices for energy storage and solar equipment.

Elon Musk established the company in 2003.

Tesla electric cars are recognized for their efficiency, broad mileage, and striking looks.

Among the most popular Tesla models are the Model S, Model 3, Model X, and Model Y.

Along with building commercial vehicles, Tesla also supplies other automakers with electric powertrain parts and systems.

On the company page, a promotion was uploaded on Thursday.


On the market, Teslas have been selling out quickly.

The company’s earnings have been increasing over the last few years, with massive positive growth.

By 2020, the number of Tesla cars sold worldwide surpassed 5 million.

Since 2018, the Model 3 has dominated the global market for electric vehicles.

The cheapest EV model today is the Model 3.

Additionally, China and Europe have had phenomenal sales for Tesla.

The company hopes to boost production and sales in several countries in the near future.

Tesla has typically performed well in terms of sales, confirming its position as the market leader for electric vehicles.

However, decreasing US expenses may make it simpler for the company to be granted large federal EV tax credits, which would increase domestic and international sales.

The following European nations are presently offering discounts on the Model 3 and Model Y:

  • Austria
  • France
  • Germany
  • The Netherlands
  • Norway
  • Switzerland
  • The UK

Read also: Nike leaning towards Gen Z China consumers after Covid restrictions are lifted

The models

Tesla in Germany apparently decreased the cost of the Model 3 and Model Y by somewhere between 1% to over 17%, according to the vehicle’s configuration.

In December 2022, the Model Y lost ground to the Model 3 in popularity in Germany.

The American EV powerhouse outperformed Volkswagen and its well-known EV, the ID.4, in Germany.

The Volkswagen ID.3 is an entry-level electric car, comparable to the Model 3 at the discounted price.

An independent EV industry analyst named TroyTeslike claims that the price of a brand-new Tesla Model 3 has fallen by 6% to 14% in the US.

The price of the Model Y varied depending on configuration, down to around 19%.

The Model 3 is Tesla’s entry-level sedan, whereas the Model Y is the company’s sport utility vehicle or crossover.

In the US, the more expensive Model S sedan and the Model X SUV are now more inexpensively available.

Tax credits

Depending on its form factor, category, efficiency, driving range, and manufacturer’s recommended retail price, electric cars could qualify for tax benefits in the US.

The US government delayed the implementation of new rules limiting the acquisition of raw materials and battery components until March to  give manufacturers the opportunity to be eligible for a $7,500 clean vehicle tax credit.

As a consequence, EV producers may once again acquire the parts and supplies they need from overseas vendors and still qualify for government financial incentives.

Individuals who qualify for government subsidies are exempt from the requirement for final EV automotive assembly under the existing interim regulations.


The recent tax cut will give EV producers tax incentives in the short and long term.

Customers who committed to spending additional money to purchase new Tesla vehicles before the end of 2022 have had issues with this.

Tesla angered many Chinese consumers by lowering the prices of the Model 3 and Model Y after committing to accept deliveries at higher pricing until the end of 2022.

Numerous customers allegedly protested and asked for refunds, according to Reuters.

Tesla, meanwhile, is unyielding.

In an effort to entice customers to take delivery of their vehicles before the end of the fourth quarter, the firm last month announced a $7,500 discount on the Model 3 and Model Y.

If US customers agreed, the manufacturers would also provide free Supercharging for 10,000 miles at their charging stations.


The business reported that 439,701 automobiles were produced and 405,278 were delivered in the fourth quarter, even after the rebates.

Although analysts had predicted a 50% annual rise in auto deliveries, neither they nor the yearly goals were achieved in the fourth quarter.

Tesla is now operating its first US assembly factory in Fremont, California.

It also has a new plant in Austin, Texas, a production facility abroad in Shanghai, and a brand-new facility in Gruenheide, Germany.


Tesla cuts prices in the US and Europe to stoke sales after lackluster year-end deliveries