As I visit the sales I cannot help asking myself how on earth can these retailers offer 50% or more discounts? Not on the “end of line” or “one off” that they have in stock or to get rid of the few items left over from the christmas stock. Clearly Retailers have “stocked” on the basis of being able to offer large discounts on a significant range of items from their catalogue.
This approach has a number of negative effects.
Customers who buy presents before Christmas are penalised by paying “over the top” pricing.
Customers will become increasingly reluctant to buy items before Christmas because they know there will be large discounts after Christmas.
Another potential negative impact is the effect on retailers who need to receive revenues before Christmas in order to pay rental or lease fees on or before the 25th December. If revenues are not there, these retailers may become insolvent.
The retail trades focus on sales comparisons with prior years is also distorted by this approach. Every year doom and gloom statistics before Christmas followed by record sales statistics after.I will watch with interest to see how this years statistics are presented.
If you disagree or would like to comment please feel free.