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Why Even Luxury Brands Can’t Quit Discounting

After avoiding markdowns for much of the last two years, many brands may be tempted to return to their old ways this holiday season. Are discounts a necessary evil?
Inner view of Bicester Village outlet.
Inner view of Bicester Village outlet. (Shutterstock)

During the pandemic, many luxury brands pledged to rein in – or even end – discounting, which had become a year-round habit in many corners of the industry. Sticking to that promise has proven harder than expected. To understand why, it would be helpful to look back at how the industry has navigated the last few years:

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