What are seasonal discounts designed to incentivize?

Seasonal discounts are structured to encourage retailers to order merchandise in advance of upcoming buying seasons. By offering discounts during off-peak times or prior to a season, manufacturers and wholesalers motivate retailers to stock up on products that will be in demand later. This strategy not only helps retailers avoid stock shortages during peak shopping periods but also assists suppliers in managing their inventory more effectively.

In contrast, while consumers may benefit from discounts on off-season products, the primary incentive is aimed at retailers to ensure that they have adequate inventory ahead of peak seasons. Retailers are motivated to make purchasing decisions that align with anticipated consumer demand, ensuring a smoother supply chain as the season approaches. This dynamic is crucial for maintaining consistent sales flow and meeting consumer needs when demand peaks.