Key Markdown Events
Consistent Tactical Promotions
Boohoo typically held more than three types of promotions in a month (although only the key ones are highlighted in Chart 3). These promotions often include discounts off assortments, time-bound offers, payday focused, and tactical key events such as Valentine’s Day and Halloween. These promotions were mostly executed at up to 50% markdown, with promo codes required at checkout.
In contrast, H&M was focused on scaling back discounting as part of its wider transformation effort. The retailer also paid attention to app download offers and member-exclusive events, in line with its goal to enhance the customer experience via offline and online store integration.
H&M Kick-Started with Aggressive Sale
Both retailers launched seasonal sale four times in a year, proving that one of the long-established markdown practices remains relevant to this day.
Boohoo executed its deepest discounts in the year-end sale at up to 80% off, which was unsurprising.
H&M launched the first seasonal sale of the year with deep discounts of up to 70% off, signalling a continued effort to reduce the build-up of inventory. The move paid off as the subsequent sale events saw reduction in the depth of discounts.