In the recently released DynamicAction Retail Index: Spring 2016, WWD’s Arthur Zaczkiewicz reported that retailer’s continued steep increase in markdowns and discounts through the first quarter with March experiencing 86% gain in orders using promotions YoY.

The piece went on to say that “retailers found it harder to convert first-time buyers into second-time buyers, with those conversions down 6 percent compared to last year.” The researchers said revenues showed a 10 percent gain in the first quarter, but added that “retailers’ ability to control profit has been unstable in early 2016.” The company said overall retail profits were up an average 5.2 percent compared with the same period last year, “however, most gains occurred in January, with increasing volatility in February and March.”

John Squire, chief executive officer and cofounder of DynamicAction, said that the “antiquated strategy of retailers relying exclusively on their promotional calendars to run their operations has fostered an ingrained need for discounts by consumers, who are increasingly being trained to wait for promotions or discounts prior to making a purchase.”

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