Brand loyalty plays a crucial role in retail success. But the consumer behavior dynamics are constantly evolving, and recent trends indicate a significant shift in how they approach purchasing decisions. With rising price consciousness, there are valid concerns about the potential erosion of brand loyalty as consumers prioritize cost savings over allegiance, for both everyday brands and luxury sellers.
Historically, the scarcity model of luxury brands has driven many to destroy surplus merchandise to maintain a certain image. Now, an image of sustainability has become the key priority, which means finding a purpose for excess inventory. Expanding your product inventory lifecycle in this way actually brings several core benefits.
This holiday season, we may see pent-up demand from earlier in the year channeled into even more ecommerce purchases and larger order values. Luxury retailers can take a few steps now to make sure they’re positioned to meet this demand.
The Nordstrom family is looking to gain a majority stake in the luxury retail mainstay that bears their name but is facing opposition from board members who see them as part of the problem, according to a report in the Wall Street Journal. Other board members are reportedly seeking an outside director to replace the family members.