A jacket marked at one hundred dollars is offered for seventy during a seasonal promotion. The thirty-dollar reduction is a discount. Retailers use discounts to move inventory, attract traffic, and meet sales targets.

Discounts may be temporary or permanent, percentage-based or absolute, targeted or store-wide. Clear communication of the original and reduced price helps customers recognize the value. Overuse of discounts can train shoppers to wait for sales and erode brand perception.

Managers track the margin impact of discounting to ensure that volume gains offset the lower price. Strategic discounts on selected items can increase overall basket size when customers buy additional full-price goods. The discount remains one of the most immediate levers available to influence demand.

• Reduction from the regular selling price
• Used to clear stock and drive traffic
• Can be percentage or fixed amount
• Requires careful margin management