Gap’s current level of promotion witnessed a decline in April 2018, after a recording a seven-year high in February and March 2018. The company is currently on a discount spree as the brand offers 50 per cent off on almost everything.
To counter this, other rival stores such as American Eagle and Abercrombie also ramped up discounting during the first quarter of 2018.
These stores' rampant discounting goes against the grain of what many other retailers such as Michael Kors, Coach, and Ralph Lauren are doing. These stores have been vocal about their commitment to cut back on markdowns, believing that they are detrimental to the brand's perception among consumers.
Heavy discounting has been the flavor of the past decade as retailers try to appeal to price-conscious consumers scarred by the recession. As a result, consumers have become hooked on discounts and usually aren't willing to pay full price.
