As retailers work their way through overstocked spring inventories, many are taking a cautious approach to the Christmas holiday buys that are taking place.

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According to DynamicAction analytics firm, the number of online orders that used a promotion jumped 75 percent in April from the prior-year period. That follows an even more promotional March, when 86 percent more orders were on sale or used a coupon versus the prior year.

DynamicAction CEO John Squire said one reason retailers are leaning so heavily on discounts is that their systems aren't sophisticated enough to read and react to customer demand or buying patterns, leaving them with excess goods. He dismissed weather as an excuse, saying the very best companies can use data to determine how large an order they should place for certain items or brands. That includes keying into more profitable items.

"Weather has been around since the beginning of time," he said. "Their entire collection is not jackets."

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