Pricing

Posies Cafe signed up with Groupon several months ago. If Groupon could promise to deliver a certain minimum number of customers, Posies would sell them $13 worth of products for $6. Nearly 1,000 people bought the Groupon in the one day it was advertised, swamping the small coffee shop for three months. Posies' owner said that the volume of sales coupled with the steep discount threatened her business, forcing her to spend $8,000 of her personal savings to pay her employees and the rent.

Men's Wearhouse is getting rid of its well-known branding ad campaign (think grey-bearded chairman George Zimmer extolling the virtues of quality and price, “I guarantee it”) in favor of “time-sensitive price promotions” to continue increasing market share.

Talbots said it returned to profitability in the second quarter, but sales fell because the company kept the line on prices to a large degree. While the recession has made it common to deeply discount, "We did not react to what became a very aggressive promotional environment," Chief Executive Trudy Sullivan said. Instead, Talbots went after margin growth — or getting the most return on the dollars it did take in — and continued to balance cost cutting with rebuilding efforts.

It's time to outfit the kiddies to go back to school and OfficeMax is partnering with Payless for a second year with a cross-promotion offering two of the essentials: school supplies and shoes.

What a difference a deal makes. Groupon launched its first nationwide deal, $25 off a $50 purchase at Gap. The promotion, which was available in every city, briefly crashed Groupon’s servers as deal-happy consumers clicked on the 50 percent discount and pinged their friends.

Target has come up with a promising comeback plan. Two bold initiatives now under way — rolling out fresh groceries in more of its stores and, starting this fall, offering 5 percent discounts on nearly all purchases made with Target REDcards — should help a lot.

Local shops nationwide are pulling in thousands of new customers with group coupons online, but the deals can sometimes work too well, turning marketing into a game of retail roulette.

Women’s clothing retailer Ann Taylor has just launched its first Foursquare promotion. Shoppers who check in to one of the company’s eight New York City stores will receive 15 percent off their full-price purchase upon their fifth checkin and Mayors will receive 25 percent off their purchases of non-sale apparel and accessories.

With unemployment high and consumer confidence low, retailers are getting more creative to lure wary consumers. Grabbing shoppers from rivals is no easy task, but merchants are making a stab at innovative ways, beyond price cuts and low overhead, to lure consumers. Merchants have little choice now but to boost sales to keep profits up.

"Christmas in July" promotions are not a new retail concept, but stores and malls appear to be kicking it up a notch this year in order to spur sales in an otherwise sluggish time of the year. Retailers and mall operators are turning to "Christmas in July" events to provide an opportunity to offer sales that are "not simply a price promotion." Instead, these sales become more of a social event.