The frequent and deep discounts offered by luxury retailer SSENSE have sparked a new ‘sale culture’ that is transforming consumer expectations, challenging brands, and impacting the sustainability of the fashion industry. While boosting accessibility and spotlighting emerging designers, the constant markdowns risk diminishing product value and creating financial strain for retailers.

Within the fashion community, particularly among those in the know (“if you know, you know” or IYKYK circles), the SSENSE sale has emerged as a significant cultural event, uniting enthusiasts and consumers alike. The Canadian online retailer SSENSE has garnered widespread attention for its frequent sales, sparking dedicated discussions on platforms such as Reddit and generating over 15,000 TikTok videos under the #ssense hashtag, where users share tips and information about its discounts.

Founded in 2003 by Rami Atallah, along with his brothers Firas and Bassel—whose expertise ranged from mechanical engineering to banking and computer science—the company initially operated a small boutique in Montreal. Expanding into luxury e-commerce by launching ssense.com in 2006, SSENSE has since evolved into a prominent destination for both established and emerging fashion brands. The retailer’s strategy of sourcing directly from brands enabled it to offer competitive pricing comparable to other luxury e-tailers like Net-a-Porter, MyTheresa, and LuisaViaRoma.

SSENSE has become recognized for its bold and avant-garde selection of brands, frequently carrying labels considered too risky by more traditional retailers. Salvador Cosio, menswear editor and Head of Fashion at Spanish retailer SVD, remarked, “SSENSE has made a name for its very edgy and fashion-forward brand portfolio,” emphasizing the company’s role in supporting brands that might otherwise struggle for shelf space.

A notable aspect of SSENSE’s influence is its commitment to promoting emerging designers. Taylor Caruso, sales director at the American-inspired sportswear brand Lady White Co., explained that being featured on SSENSE led to increased customer traffic influenced by the retailer’s curation and styling. This dedication to spotlighting newer labels has allowed SSENSE to become a significant tastemaker within the industry, having carried debut collections from designers like Demna Gvasalia, Matthew Williams, and Virgil Abloh.

The platform also distinguishes itself through investment in editorial content. Since appointing Joerg Koch as its first editor-in-chief in 2015, SSENSE has dedicated much of its homepage to articles about influential figures and trends, integrating fashion journalism with e-commerce to foster stronger connections with consumers. Additionally, the brand maintains an active social media presence characterized by meme-style content, further enhancing engagement.

SSENSE’s sales strategy, however, remains the most significant draw for consumers. The retailer frequently runs seasonal sales as well as other promotions offering discounts up to 70%. Early access to these deals is sometimes granted via private or VIP sales, encouraging shoppers to capitalize on exclusive offers. Despite their popularity, these frequent and extended sales have sparked discussion regarding their impact on the broader fashion ecosystem.

Sebastien Ami, designer and creative director of his eponymous brand, shared his experience with SSENSE sales following his FW22 collection, noting challenges in managing pricing across different retail channels. “The infamous ‘SSENSE sale’ did affect our business. We weren’t prepared for the sale to hit so close after delivery, especially when items were still full-price on our site and at other small boutiques,” Ami said. This required adjustments to maintain competitive pricing and margins.

Creative consultant and stylist Daryl Auguste differentiates between occasional, seasonal sales and the more pervasive “sale culture” evident at SSENSE, describing the latter as “a shift towards a 24/7/365 reduced-price model where nearly every item goes on sale.” He argued that while sales can be beneficial in the short term, perpetually discounted pricing pressures brands to raise their initial retail prices to compensate for markdowns, complicating growth and competition, particularly for emerging labels.

Industry voices like Steve Gonzalez, a New York-based creative director, and Salvador Cosio express concerns about the normalization of constant sales. Cosio stated, “It’s impossible to have healthy numbers when there are sales as soon as the product arrives—It’s killing retailers, stores, and brands.” The trend contributes to consumer expectations that premium goods will regularly be discounted, reducing the perceived value of products.

The challenges posed by this sale-driven landscape have manifested in financial difficulties for multiple luxury e-commerce platforms. In 2023, SSENSE itself reduced its workforce by 7% amid a near 20% decline in revenue. Similar struggles have impacted other retailers: Yoox-Net-a-Porter was acquired by MyTheresa with significant staff downsizing, Matchesfashion ceased operations in December, and Farfetch continues to face ongoing difficulties.

Kyle Foxworth, general manager at Standard & Strange in New York City, summarized the current market sentiment: “We are buying less, and more conservatively, right now, betting on no growth or shrinkage in revenue for at least a year or two.” For his business, maintaining partnerships with brands that command strong full-price sell-through rates is a priority, leading to careful monitoring of discounting activity. “If we have existing brands that start going on sale more often, we tend to drop them or pull back heavily,” he noted.

The implications of continual sales extend beyond commerce to affect how consumers value clothing and brands overall. Auguste reflected, “Sales may net a short-term benefit in terms of money saved, but it cheapens the value of clothing in ways that aren’t easy to quantify.” He further explained that brands often respond by raising prices or reducing quality to offset markdown losses.

Ana Andjelic, author of The Sociology of Business, offered perspective on the broader context, stating, “Sale culture is not new and brands like SSENSE are not really to blame. Anyone can go to Google and search if they know the exact name of an item.” She added that SSENSE’s size relative to other platforms means its sales function as a competitive advantage, contrasting it with larger aggregators like Farfetch that provide broader pricing transparency.

Brand representatives note efforts to navigate these challenges through intentional discounting practices. Taylor Caruso from Lady White Co. shared that they communicate clearly with SSENSE and other accounts about which products should not be discounted, observing that the retailer has been “pretty responsive” to these guidelines.

Despite the widespread prevalence of sales, consumers still weigh quality and timelessness in their purchasing decisions, though markdowns influence shopping behavior. Auguste expressed a personal example: “I’d love to own more Loewe, but the relatively low sales markdowns are an impediment, compared to a brand like Jil Sander, which is regularly marked down at 50 to 70% off.”

As the fashion industry continues to adapt to changing consumer habits and economic realities, the prevalence of sales—especially those as prominent as those on SSENSE—reflects complex dynamics between accessibility, brand positioning, and market sustainability. The interplay of these factors will likely continue shaping the retail landscape in the years to come.

Source: Noah Wire Services