Retailers use advertised price promotions to attract customers and stimulate store traffic and sales. While several studies have investigated the efficacy of individual-brand promotions, little empirical research has investigated the ways in which store-level promotion strategies influence retail performance. This article reports on a natural experiment involving a change in a grocery store's promotion strategy from featuring many items at small discounts, to a few items at deep discounts. Results of a time series intervention analysis indicate that such a change in strategy led to an increase in chain-level sales dollars but did not affect customer traffic.
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