Retailers suffering from 'promotion fatigue'

A new survey out reveals that retailers are suffering from a

new condition; ‘promotion fatigue.’

Retail and distribution software specialist, Aldata solution, commissioned Martec International to survey over 130 retail CIO’s.

Results showed that after 2 years of focusing on promotions, 46% of the retailers surveyed, plan to shift their attention to gaining a full view of the customers’ buying patterns in-store, online, and via catalogue due to complete fatigue.

In the ‘2011 Global Retail CIO Survey,’ Aldata found that almost half (46%) of the 130 retail CIO’s surveyed said their companies, after the initial emphasis on products through the current recession, now plan to switch their attention to gaining a ‘360 degree view’ of their customers to better understand buying patterns and improve margins – including reducing both overstock and waste and saving costs.

Allan Davis, CMO of Aldata, says ‘The ongoing economic situation has altered the way the retail industry operates and forced a change in tactics in the fight for customer spend. Promotion management changing from the number one investment priority in 2009, fourth in 2010, and ninth in 2011, is just one example of this change in tactics.’

He continues, ‘going forward into 2011 and during the coming three years, ‘promotion fatigue’ will give way to more focus on understanding consumer buying behaviour better and getting a full view of what, how, and where, customers buying.’