Retailers Handcuffed by Staggering 63 Percent Increase in Promotions in Early 2016 According to the Latest DynamicAction Retail Index Released at Shoptalk

Orders using promotions up 86 Percent YOY in March of 2016; retailers struggle to convert first-time buyers into repeat purchasers

SILICON VALLEY, Calif.--()--Retailers are relying heavily on discounts and promotions thus far in 2016, continuing the trend from the 2015 holiday season of pulling the promotional “lever” far too often, according to the DynamicAction Retail Index: Spring 2016. The findings were released today at the inaugural Shoptalk conference in Las Vegas, NV.

Key findings from the benchmark include:

  • Retailers sold less at full price in Q1 2016 vs. a year ago, with full-price sales down 4 percent for the quarter and orders using a promotion up 63 percent. March was an especially promotional month, with an 86 percent increase in orders using promotions compared to 2015.
  • Retailers found it harder to convert first-time buyers into second-time buyers, with those conversions down 6 percent compared to last year.
  • While revenues were up 10 percent in the first quarter compared to 2015, retailers’ ability to control profit has been unstable in early 2016. Retail profits were up an average 5.2 percent year-over-year in Q1; however, most gains occurred in January, with increasing volatility in February and March.

“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,” said John Squire, CEO and co-founder of DynamicAction. “The very best retailers are preparing right now to answer customers’ needs and beat shareholders’ expectations during the holiday season of 2016, by focusing on curbing the promotional addiction and utilizing their full data set to better manage inventory and operations.”

The DynamicAction Retail Index: Spring 2016 is an analysis of more than $5 billion USD in consumer transactions which benchmarks retail trends in key categories from January-March 2016 in comparison to the previous year.

DynamicAction will discuss the findings from the DynamicAction Retail Index: Spring 2016 at Shoptalk, May 15-18, where Squire is also participating in a panel discussion on “The Future of Artificial Intelligence in Retail,” on Tuesday, May 17 at 1:40 p.m. PDT. If you would like further information on the DynamicAction Retail Index or wish to speak to DynamicAction regarding additional retail trends, contact, or stop by DynamicAction’s storefront (T55B) on Main Street during the conference.

About DynamicAction:

Better decisions. Faster action. DynamicAction is the most advanced analytics solution specifically built for retail merchandising teams.

Connecting and analyzing millions of data points from every part of a retail organization, DynamicAction uses more than 600 proprietary algorithms that encapsulate hundreds of collective years of retail knowledge to pinpoint margin-eating disconnects in the business, prescribe the precise actions to take and accurately rank those actions by financial impact. Merchandising and eCommerce teams run more efficient organizations, sell more at full price, curb the discounting addiction, capitalize on demand and increase profit.

Retailers across the globe, including Brooks Brothers, Sur la Table, El Corte Ingles, Tesco, Nine West and Cole Haan, rely on DynamicAction to make better and more profitable decisions in order to get to action, faster.

Leading analyst firm Frost & Sullivan recently declared, “DynamicAction has Moneyballed retail. There’s a new way to run retail organizations—with a clear understanding of data and immediate actions to improve performance.”

Headquartered in Silicon Valley, DynamicAction has offices in London and Dallas. Connect with us at and @Retail_DnA on Twitter.


Ketner Group PR + Marketing (for DynamicAction)
Kathleen See or Mariana Fischbach, 512-794-8876

Release Summary

Retailers are relying heavily on discounts and promotions, according to the latest DynamicAction Retail Index released at Shoptalk; promotional orders are up 63% so far in 2016, compared to 2015.


Ketner Group PR + Marketing (for DynamicAction)
Kathleen See or Mariana Fischbach, 512-794-8876