Discounters Leaning on Heavy Markdowns for Sales Lift

Despite the reports that consumer spending is on the rise, discount retailers are continuing to promote markdowns in order to attract budget-conscious shoppers, according to a Chicago Tribune story that ran last week. Kmart and Walmart are still reducing prices on staples such as children’s T-shirts, although the negative effects of drastic price-slashing has been a retail issue since the recession began. “Promotions and things that drive traffic are still critically important,” Mark Snyder, chief marketing officer at Kmart, told the Tribune. “I don’t think we’re out of the woods.” Read the full story here.