However here in the states, Kohl's has been surviving kind of on this strategy alone. The quality of the clothes is actually quite low, but they price them at "normal" prices and then almost constantly have massive sales -- 20%, 30%, even 40%. My mom will in fact refuse to shop there until there's at least a 30% sale.

Meanwhile the value-accurate price of the clothes IS that prices that's actually 40% off, but she thinks she's getting a steal.