We’re past mid-January 2025, making this the perfect time to tune in to insights from Belgian and Dutch fashion retailers. Here are the five most striking findings so far:
1. A Quick Start with Deep Discounts to Secure Revenue
Many retailers kicked off the winter markdowns with substantial discounts, especially in the 50%-70% range. The goal of this strategy was to attract consumers quickly and secure revenue, driven by signs that shoppers are working with tighter budgets for their winter purchases.
By immediately placing more items in the higher discount categories, merchandisers and retail leaders ensure that customers don’t turn to competitors offering aggressive discounts earlier. It’s a clear shift, making it critical to have sufficient stock visible and strategically placed in these popular discount segments.
2. Consumers Are Becoming Increasingly Price-Sensitive
Retailers continue to report that consumers are more responsive to larger discounts. Previously, markdown strategies with discount tiers such as 0%, 20%, 30%, 50%, and 70% consistently performed well. Now, however, purchases are increasingly concentrated in the higher discount categories (50%-70%). Items with smaller discounts (20%-30%) generate less sales for many retailers than in the past.
This shift highlights the need for retailers to continuously evaluate their strategies, even during sales periods. Setting clear rules for how many items fall into the higher discount categories helps meet consumer expectations and safeguard revenue.
3. Shopping Behavior Shifts to Immediate Needs
Another confirmed trend is that consumers are shopping less in anticipation and more in response to immediate circumstances. Instead of thinking ahead (“Winter is coming, I’ll buy a coat”), customers now respond more to direct needs, such as weather conditions. Is it raining today? Then they’ll look for a raincoat now. These short-term purchasing decisions complicate inventory management and promotion planning, requiring timely discounts to convert these spontaneous shoppers.
Additionally, the growing familiarity with e-commerce plays a significant role. Customers expect fast delivery from platforms like Bol.com and Zalando. This has shifted consumer expectations and affected physical stores, with items that aren’t quickly available losing out to competitors who can deliver faster.
This trend poses challenges for inventory management. More stock is being allocated to webshops, sometimes weakening physical stores and potentially making the in-store shopping experience less appealing. Retailers must carefully balance supporting their physical stores with optimizing their online offerings, requiring a well-thought-out approach to succeed across both channels.
4. The Shift to Comfortable and Practical Clothing
Another trend is the growing preference for practical and comfortable clothing over formalwear. Brands like Only for Men report that sales of traditional, formal items such as blazers and suits are steadily declining. This is partly due to the rise of remote working and a more casual work culture.
Retailers focusing on practical clothing and hybrid styles (like sneakers paired with dress pants) are finding greater success in appealing to modern consumers, even during the winter sales.
5. The Effectiveness of Bundled Sales and Generic Promotions
Bundled sales (e.g., buy two pairs of trousers and get a discount) are having a significant impact on revenue and margins. Retailers are experimenting successfully with this strategy, even during the sales season. Generic promotions, such as discounts on a specific brand or product category, are also driving strong sales. The idea of “getting something extra” motivates consumers to purchase more.
What Does This Mean for the Future?
Fashion retail is entering a period of adaptation. Teams need to be flexible with their markdown strategies, respond to changing consumer behaviors, and find ways to align e-commerce and physical stores more effectively. The growing number of AI tools, like Markmi, can help merchandisers make smarter, faster, and more confident decisions.
What lessons is your organization drawing from these trends? Share your insights and challenges – we’d love to hear your thoughts!
