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07/13/2022

NPD: More TVs Being Sold On Promotion

Retailers facing a surplus of inventory have expanded the number of discounts they are offering on televisions.
Greg Sleter
Associate Publisher/Executive Editor
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Shopper buying a television

Televisions remain a popular item with consumers but more units are being sold on promotion, according to new figures from The NPD Group.

For the first four months of 2022, 71% of televisions purchased in the United States were sold through retail promotional efforts. Over the same time frame in 2021, only 18% of TVs sold were done so on promotion. In fact, the share of TVs being sold on promotion during this timeframe is above holiday (Q4) 2021, 2020, and 2019 levels, based on a recent NPD Price and Discount analysis.

“After facing unexpected inventory challenges and high consumer demand, retailers are now finding themselves with an inventory surplus and are discounting TVs as well as products in other categories to move inventory out the door,” said Paul Gagnon, vice president, industry advisor for NPD.

This sharp uptick in TVs being sold on promotion is not reflective of what is being seen in the consumer technology industry at large. While consumer tech promotional activity has begun to rebound from the lows seen in 2021, it remains below pre-pandemic levels reported in 2019. Through April 2022, 24% of total consumer electronic units sold were on promotion. This is up two-points from the same time period in 2021, but three-points lower than reported in 2019.

“Over the last two years consumers shifted their CE spend as they bought products when they needed them, whether it was ahead of typical upgrade cycles or at a higher price outside of promotional periods, as they had technology needs that had to be met due to pandemic lifestyle changes,” said Gagnon. “However, with a return to experiences and building inflation, a shift has begun back toward frugality. As a result, we expect the 2022 holiday season to look a lot more like pre-pandemic times, with higher rates of promotion to entice consumer spending in TVs and beyond.”