Discover why bigger discounts don’t always lead to better results. Based on shopper behavior across the Nordics, Germany, Benelux, and the UK, this blog explores smarter discount strategies for retailers in 2025.
As the retail landscape grows more competitive, discounts remain a go-to strategy for driving customer acquisition and boosting sales. But here’s the catch: bigger discounts don’t always mean better results.
When we investigated shopper behavior and discount trends in the Nordics, Germany, Benelux, and the UK, we discovered what’s really happening when retailers turn up the markdown dial.
Let’s paint you a picture and discuss what strategies will serve you the best in 2025.
Retailers across the Nordics increased their discounting efforts, compared to 2023, both online and in-store. However, higher discounts didn’t result in higher sales volumes. On average, shoppers saved 81 SEK through discounts, but the number of items sold at discounts dropped.
Here are the numbers that back that up:
Discounts in the Nordics – taken from the Retail Radar 2025 report
What this tells us: While shoppers may be spending more per transaction (likely opting for higher-ticket items when discounted), the volume of items sold isn’t growing. More discounts don’t necessarily equal more demand; they just make each sale more expensive for the retailer.
Different age groups respond to discounts uniquely, shaped by spending habits, lifestyle, and expectations.
Gen Z saves around 100 SEK on discounts. Digitally native and value-conscious, Gen Z shoppers prioritize quality over quantity. They’re highly responsive to discounts but also show a 44.8% higher return rate than average—hinting at higher expectations around fit, product experience, or ease of returns.
Gen Z has 44,8% higher return rate than average.
Millennials save around 94 SEK on discounts. Still leading as consistent shoppers, they often buy for households and show slightly below-average spending growth. Their high return rate shows that convenience is important in how people shop and what they expect satisfaction from.
Gen X saves around 83 SEK on discounts. Known for thoughtful and practical shopping, Gen X prioritizes value for money. They tend to purchase slightly more per trip and maintain a low return rate, indicating more deliberate and satisfied purchasing.
Baby Boomers save around 60 SEK on discounts. Boomers are purchasing fewer items in each transaction and spending less overall, likely reflecting their priorities in retirement. Their extremely low return rate indicates a strong alignment between their purchases and what they choose to keep.
Seniors (80+) save around 43 SEK on discounts. This group shops less often, clearly focusing on essentials only. Their extremely low return rate shows highly selective and intentional purchasing behavior.
Insight: Younger generations are driven by discounts but tend to return more. Older generations spend less but keep more, showing stronger purchase satisfaction and a more deliberate approach to shopping.
Consumers across Europe are heavily influenced by deals; however, their search behavior and motivations can vary by region.
UK shoppers still love a discount, but they’re also looking for exclusivity and recognition. Loyalty programs are a key growth lever. For more insights, download Retail Radar UK here.
German shoppers expect visible savings and value-added loyalty options. Make promotions easy to find and loyalty benefits clear. For more insights, download Retail Radar Germany here.
Discounts matter, but pairing them with personalized loyalty offers can drive stronger regional engagement. For more insights, download Retail Radar Benelux here.
As stated, deeper discounts don’t always lead to more sales. They often simply shift spending toward higher-priced items without increasing transaction volume—while cutting margins.
Instead of relying on broad markdowns, retailers should consider more strategic approaches that balance value with profitability. Here’s where to start:
Segment shoppers by value, frequency, and behavior. High-value customers need less of a nudge than deal hunters.
Many shoppers expect perks. Instead of relying on deep discounts, build loyalty programs that reward frequency, engagement, or even referrals.
Gen Z’s high return rates hurt profitability. Use better sizing tools, clearer product info, and post-purchase engagement to lower returns.
The right product, at the right price, at the right time = higher impact. Contextual discounting beats blanket codes.
A discount strategy should strike a balance between conversion, value, and profitability. Deep cuts aren’t always worth it if they erode your bottom line.
Discounts still drive behavior, but their effectiveness depends on execution. As shoppers become more strategic, retailers must follow suit.
Bigger doesn’t always mean better. Smarter means sustainable.
Use data to personalize, build loyalty, and deliver value—without undermining your margins. For more insights, read the Retail Radar reports.
We love all things customer and product data, and would love to chat about your brand’s individual challenges, and how our solutions can help.
Voyado Engage 
Voyado Elevate 
Powered by Bonnie AI 
