Promotions, Deals and Discounts Define the Current Holiday Season

Last year as the economy was in the throes of a recession, there was a lot of speculation on consumer behavior, and retailers feared that their holiday sales would take a hit. They slashed prices to lure customers, there were70 percent markdowns on merchandise.

This year, the story is slightly different. Retailers are trying to boost their holiday sales through promotions and not mere discounts.

Some promotions are aimed at e-mail subscribers, though most deals are featured on the website itself. Some retailers accompanied deals with philanthropic gestures like Gap Give and Take Program, whereby consumers get 30% off on their purchase and 5% of the amount spent by them goes to a non-profit of their choice. Retailers are not leaving any stones unturned - free shipping, no-receipt, any-item return policy as well as in-store deals.

In an annual survey, Internet Retailer studied the season promotions offered by top 100 retailers listed in the Internet Retailer Top 500 Guide. More and more e-retailers are offering free shipping on a minimum order value ranging between $30 and $75.

About 72% e-retailers featured deals on their home page while 32% introduced deals on specific items or categories. For some of the retailers, their home page design revolved around the holiday season. About 10 retailers feature site-wide discounts, while others like Sears.com, Walmart.com, Newegg.com, Home Depot.com and CircuitCity.com sent holiday-themed offers to their e-mail subscribers.

Come holiday season, consumers get buried under an avalanche of deals and promotions, they smartly sort through them to arrive at the best deal. Retailers should plan controlled promotions to ensure that the promotions though aggressive, are not irrational.