Research indicates that automatic markdowns are what?

Automatic markdowns refer to a pricing strategy used primarily in retail to manage inventory levels and boost sales by systematically reducing the prices of merchandise over time. Research indicating that automatic markdowns are waning as a merchandising concept suggests that retailers are moving away from this strategy for various reasons. One possible factor is the increase in consumers' expectations for promotions and discounts, leading retailers to seek more innovative and engaging sales strategies to capture customers' attention. Additionally, the rise of e-commerce and data analytics has transformed how retailers manage pricing strategies, allowing them to implement more dynamic pricing models that do not rely solely on automatic markdowns.

In this context, while automatic markdowns have long been a staple in merchandising, changing market conditions, customer preferences, and technological advancements are leading retailers to reconsider their effectiveness and explore new pricing strategies that may better align with contemporary shopping behaviors.