Big apparel names like Levi’s, Aritzia, Ralph Lauren, Under Armour, and Abercrombie & Fitch are making a bold move. They are holding full retail price firm and testing how much affluent, loyal shoppers will pay—even as tariffs, inflation, and economic uncertainty weigh on others. These brands are betting on confidence among high-income consumers. They know this segment shows low price sensitivity and that demand still holds. For these brands, full retail price has become the core of their strategy.

 

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Full Retail Price Discipline Shapes Smarter Retail Promotion Strategy

 

So, what are they doing differently?

 

  • They reduce markdowns. They offer fewer retail discounts. They avoid blanket promotions.
  • They use smarter tracking tools. They watch where and when customers buy. They fine-tune their retail promotion strategy only when needed. For example, if a product doesn’t move, then a region might get a sale. Otherwise, prices stay at full retail price.
  • They rely on resilient customers. Those earning over US$100,000 or more per year. They also note that the richest 10% of Americans now account for roughly half of all consumer spending. These people benefit from stock market gains and relatively low debt, so they show low price sensitivity.

 

This strategy protects the margin. It means brands don’t have to erode value with constant discounting. It means they keep profitability intact while still being able to move full price items when needed.

 

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The Risk of Relying on Affluent Shoppers for Full Priced Items

 

This full retail price strategy works for now. But risks lurk:

 

  • If sentiment shifts, even affluent shoppers may pull back. A sudden economic shock or labour market weakness could reduce their spending.
  • High-priced inventory might pile up. If full price items do not sell, retail discount flexibility goes out the window. Brands cannot afford to hold excess inventory without sacrificing margin.
  • Narrow focus restricts reach. If you lean too much on premium customers, your brand may lose appeal among broader segments. If that broader base is needed for volume, you become vulnerable.

 

So while full retail price protects margin today, it could expose weakness tomorrow if things change. Flexibility is not optional. It becomes essential.

 

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Balancing Full Pricing with Broader Appeal Beyond Low Price Sensitivity

 

To succeed long term, brands must balance:

 

  • Premium positioning: full retail price, prestige, brand strength. This brings status, higher margin, brand loyalty.
  • Broader appeal: not everyone pays full price items. Some segments are bargain hunters, some are sensitive to retail discount. You don’t want to lose them entirely.

 

Brands need product lines that allow for both. Possibly “core premium” lines and “value or entry” lines. Also, a retail promotion strategy must be smart: limited, targeted, timed. Use data to trigger them only when needed—not as a default.

 

Likewise, inventory management must support flexibility. If a premium item underperforms, you must have the ability to discount or reposition it without damaging brand perception.

 

 

 

What Pricing Teams Can Do to Manage Retail Price Promotions

 

If you lead or work in pricing, here are concrete practices:

 

  • Test price bands and discount triggers precisely. Don’t assume one retail discount fits all. Use data to find thresholds: at what point do buyers drop off? Which retail promotion strategy builds long-term loyalty versus short bursts?
  • Keep promotions minimal, timed and targeted. For example, limit discount periods to specific seasons, or only to specific locations or customer segments. Avoid whole-store markdowns of full price items unless urgency demands it.
  • Build agility. Use real-time analytics. Monitor demand, inventory and external signals (inflation, labour market, etc.). Be ready to pivot: if full retail price isn’t working for a line, reduce price or promote smartly without delay.

 

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How Executives Should Lead Retail Price Promotions

 

If you are in leadership (CEO, CFO, Head of Pricing, Head of Retail, etc.), think bigger:

 

  • Make full retail price discipline strategic. Don’t leave decisions to ad-hoc moves. Incorporate them into your overall brand, margin, and customer-value strategy.
  • Invest in systems. You need technology that lets you adjust full price items and promotions in near real time. Customer-tracking tools. Inventory trackers. Margin analysis.
  • Align pricing with brand positioning and customer value. Ask: what does the customer expect? What value do you deliver? Can you defend your price premium with quality, service, identity?
  • Don’t chase short-term sales at the expense of long-term equity. It may feel safe to discount when volume dips. But doing so repeatedly erodes trust and weakens your retail promotion strategy.

 

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The Pricing Imperative for Long-Term Success

 

Full retail price strategy works for now. It protects margins and rewards brands that hold value. But it is not a magic wand.

 

Long-term winners use full retail price as one tool among many. They treat pricing as a dynamic capability. They balance prestige with reach and build flexibility into every decision.

 

If you lead pricing or strategy, don’t just watch this trend. Rethink your approach. Audit your pricing architecture. Map how often you use a retail discount, for whom, and why. Strengthen analytics. Test smart triggers, not blanket promotions.

 

Because when consumer confidence shifts—and it will—you want to be one of the few brands that keeps both margin and trust.

 

Pricing is never set-and-forget. Full retail price strategies show discipline, but they also prove that agility is essential. Every business faces its own risks and opportunities, and the right balance looks different in each market. That is where expert support makes a real difference.

 

If you want to strengthen your retail promotion strategy, protect margins, and build resilience, now is the time to act. Reach out to us today—we can help your pricing team and leadership align, adapt, and stay ahead with confidence.

 

For a comprehensive view of building a great pricing team to prevent loss in revenue, Download a complimentary whitepaper on Future Proof Your Pricing Strategy.

 

Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

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