Does it diminish the brand, maybe a little amongst watch enthusiasts but we are a different breed to mainstream consumers who don't frequently watch forums on a daily/weekly basis.
Has it set an expectation re discount, yes, I have only paid full price (less voucher) for 1 of 10-12 acquisitions from them. I would struggle to justify a full price purchase to myself now. That's OK though and I wouldnt buy any if I didn't value the product, whatever the price.
Anyway, I treated myself for my Birthday yesterday on a NN watch that I've admired for a while, it was an unplanned purchase facilitated (in my head) by the Sale price, so I'm all good with the CW strategy today

There's a sale currently on at DFS (as always) but I won't be buying a new sofa today and if I was it probably wouldn't be from that store as I perrsonally don't value the product.