Beyond Discounts:
Rethinking Retail Promotions for 2026
Retail pricing and promotion strategies have shifted dramatically over the past six months, driven by tariff disruptions, the mainstream adoption of electronic shelf labels (ESLs), and the growing role of artificial intelligence in dynamic and personalized pricing. Tariffs on imports forced many retailers to rethink their pricing structures, with localized supply chains emerging as a resilience strategy. ESLs, once niche, became a critical efficiency tool, enabling real-time price changes, reducing labor costs, and improving accuracy.
At the same time, AI-powered dynamic pricing allowed retailers to capture incremental margin by adjusting prices in response to demand and competition, while personalized promotions tied to loyalty data boosted engagement and conversion rates.
Over-promotion fatigue eroded brand equity, training consumers to wait for discounts rather than valuing differentiation and lack of understanding of promotion effectiveness has shown significant waste in promotional dollar spend and investment Opaque dynamic pricing, when perceived as manipulative, triggered consumer backlash and undermined trust. Retailers that simply passed tariff costs onto consumers without messaging saw demand decline, while generic loyalty programs failed to stand out in a crowded marketplace.
The lessons are clear: technology can enhance efficiency, but consumer trust is fragile.
- Focus on accountable AI that ensures transparency in dynamic and personalized pricing.
- Provide visible value beyond discounts by emphasizing quality and sustainability.
- Offer personalization at scale through loyalty ecosystems that deliver individualized experiences.
- Invest in operational efficiencies in ESLs, automation, and supply chain
- Embrace resilience.
- Prioritize digital-first promotion strategies to integrate seamlessly across channels.
- Look to private label innovation, particularly in premium categories, to continue to be a growth driver.
The past six months have underscored a critical truth: pricing and promotion are no longer static levers—they are dynamic, data-driven, and consumer-sensitive. Retailers that embrace AI responsibly, personalize at scale, and deliver transparent value will thrive in 2026. The winners will be those who balance efficiency with empathy, ensuring that technology enhances—not erodes—consumer trust.
Craig Rosenblum
Principal, Columbus Consulting
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Columbus Consulting delivers solutions that drive true value and have been transforming the retail and CPG industries for over two decades. We are a retail consulting company of industry experts. Our approach is simple, if you do it, we do it. We are more than consultants; we are experienced practitioners who actually sat in our clients’ seats. We understand the challenges, know what questions to ask and deliver the right solutions. Columbus offers a unique, consumer-centric approach with an end-to-end perspective that bridges functional & organization silos from strategy to execution. Our specialties include: unified commerce, merchandising & category management, planning & inventory management, sourcing & supply chain, data & analytics, accounting, finance & operations, people & organization and information technology. Let us know how we can help you. To learn more, visit COLUMBUSCONSULTING.COM.
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Looking ahead to 2026, retailers must:
Recent pricing & promotion innovations revealed inefficiencies and unexpected consequences.
— Douglas Longobardi, Chief Revenue Officer, Asendia USA
