Editor’s Note: Retail Trends From INNOVATE 2011

2. Think carefully before using group buying sites. No one can deny the success and popularity of daily-deal sites such as Groupon and LivingSocial, but there are potential drawbacks to using these services, several speakers noted. "There's the possibility that the wrong customers — existing customers who'd likely purchase merchandise in your store anyway — may be getting the deals," said Bill Bass, president of the Charming Direct division of Charming Shoppes, who spoke at a session on how customer insights can shape retailers' futures. "This could have a huge effect on margins, devalue brands and cannibalize sales to existing customers," he said. But Greg Bettinelli, senior vice president of marketing at daily-deal fashion site HauteLook, said that deal sites and the deal mentality is here to stay. "I think after Sept. 2008, our lives changed forever," he said. "Value became cool again. And with gas prices currently hovering at $4 a gallon, I don't think the mind shift around finding the best deals is going away anytime soon."