Though the study found that some retailers are shifting from discount- to rewards-based efforts, it also indicates that "there's a time and place for both strategies."
By and large, there's been relentless pressure on retailers to discount, mainly because consumers are focused on making sure they're getting the best price they can while shopping.
You can even say that discounting has become so widespread that consumers have come to expect it. A recent study conducted by Valassis, in conjunction with The NPD Group, found that many consumers are on the lookout for deals throughout the customer journey—whether it was something they planned to buy (42%), something they didn't even intend to purchase (26%) or a coupon that "planted a seed" to entice a transaction (25%).