The problem was not that people like discounts more than low prices. It was that the company never got rid of discounts. They advertised new low prices and no discounts and then still had discount racks all over the store, leading customers to recalibrate the goods in their minds as being less expensive (and possibly "cheaper") then before while still allowing them to wait for discounts.

The company also introduced a lot of product lines that were supposed to be specialty brands which led to entire stores looking like disjointed flea markets. There was no way to tell what was unique or special because everything was branded as unique and special.