With inflation on the rise, retailers like Primark and Old Navy are exercising a new tactic to opt out of raising prices to draw in value consumers. By employing this stratagem, retailers can offer promotions without explicitly offering discounts, jeopardizing margins if relied on too heavily. The price of goods and services rose 8.5% in July of last year, making consumers more price-conscious. By freezing prices, retailers can win customer loyalty during crucial sales periods like the back-to-school season. However, experts warn that communication with customers is essential in this case to avoid raising expectations about maintaining deals when the economy improves.
Source: Modern Retail