Shoppers are experiencing “discount burnout” due to a surge in promotions across the fashion industry, according to a report by AlixPartners. The survey of 9,000 U.S. consumers found that price is becoming less important when deciding on purchases, with a 13% decrease in the importance of price compared to last year.

Retailers have relied heavily on discounts and promotions to counteract rising prices due to tariffs imposed by President Donald Trump. However, shoppers are now seeking more than just discounts, focusing on consistent pricing, value for money, and quality. This shift in consumer behavior is leading retailers to rethink their strategies for the upcoming holiday season.

The upcoming holiday shopping season may face challenges due to falling consumer sentiment, an uncertain job market, and persistent inflation. This economic backdrop highlights the need for retailers to prioritize execution, quality, and brand strength over discounts to attract customers. The luxury sector serves as a cautionary tale, as brands that dramatically raised prices saw consumers trade down to more reasonably priced alternatives.

Retailers are warned that discounts alone will not be sufficient to drive demand this holiday season. The fatigue around promotions, combined with the necessity for retailers to raise prices to offset tariffs, presents a risky situation for retailers who have traditionally relied on discounts to attract customers. The report emphasizes the importance of quality and credibility in maintaining consumer trust.

Read more at CNBC: Consumers feeling ‘discount burnout’ ahead of Black Friday