Retailers Shift Holiday Strategy: Broader Promotions, Shallower Discounts
Event summary
- Impact Analytics' research shows promotional breadth doubled from 14% to 30% of tracked assortment between Prime Day 2025 and 2026.
- Average discount depth remained steady at ~30%, despite rising tariffs and cost pressures.
- Beauty & Personal Care had the broadest promotional coverage at 45% of SKUs, while Electronics expanded reach while reducing discount depth by 7 points.
- Sports & Outdoors was the only category to increase both promotional breadth and depth year-over-year.
The big picture
Retailers are adapting to economic pressures by expanding promotional coverage while maintaining pricing discipline. This shift, driven by rising tariffs and margin constraints, marks a strategic pivot from deep discounts to broader reach. The ability to target promotions effectively using AI will be critical as retailers prepare for back-to-school and holiday seasons.
What we're watching
- Promotional Strategy Evolution
- How retailers will balance broader promotional reach with disciplined discounting during the holiday season.
- Category-Specific Trends
- Whether categories like Beauty & Personal Care and Electronics can sustain their current promotional approaches.
- AI Adoption Pace
- The pace at which AI-driven merchandising decisions become standard across retail sectors.
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